Tips to Reduce Customer Churn

Improving customer loyalty is a top priority for marketers. The more loyal a customer, the higher their lifetime value. While customer churn is an inevitable part of business, reducing churn should always be a goal so that you have a healthy ratio of lost customers compared to new customers. Here are a few tips on how to reduce customer churn.

• Identification
  • Identify all of the possible reasons for customer churn. Examples could include things like geographic barriers, financial barriers, customer service issues, or product issues. It’s important to anticipate why you could lose a customer, so you can proactively plan to intervene.
    
    
• Consideration
  • Consider each reason for churn and think about them as isolated scenarios. Ask yourself…
    • What did the customer experience?
    • How is the customer feeling now?
    • Why did this experience lead to churn?
    • How can we improve this experience to reduce churn?

• Communication
  • Think about the ways in which you currently communicate with your customer to identify opportunities for improvement. Are you proactively seeking their feedback? Are you responding to them in a timely fashion? Are you easy to communicate with? Are you checking for satisfaction? If you answered no to any of those questions, you have some work to do!
    
    
• Conflict Resolution
  • Take conflict resolution seriously BUT do not take complaints personally. Listen to your customers, and proactively seek their feedback whenever possible. Your goal should always be to find a resolution when an issue is raised. Don’t forget to follow up and check back often.

If you would like to strategize on more ways to reduce customer churn to help improve your customer loyalty and lifetime customer value, our team at Flashlight Marketing is here to help. Contact us today for a free consultation.