Best Practices to Keep Churn Down and Loyalty Up
You’ve launched your startup and you’ve filled your plate with a group of clients that like your value proposition. It feels great, but there’s always that fear in the back of your head that this might not last the next few months. Maybe inflated expectations don’t suit the reality of what you’re offering or maybe flashy alternatives are making your clients turn their head.
Whatever the case, customer churn is a reality for startups, but it doesn’t always have to be something to fear; there are ways to fight back. Here are some of the best lessons out there to keep churn down, boost retention, and bring up your bottom line month in and month out.
When you break it down in numbers, customer retention is one of the most valuable metrics when it comes to keeping sales and profits steady and on the upward trend. Even a 5% increased rate of retention can boost profits by as much as 25% to 95%. So there’s obvious value, but it can be a bit of a battle to turn into reality. Customers are capricious and always out for new solutions. Who can blame them with so many promises and solutions cropping up every day? It’s going to take no small amount of effort to keep yourself at the top of their list, but the value can’t be understated.
Customers need to see that you can do the job that you’ve promised. But whether it’s a failure in the onboarding process or a lack of consistent successes with your product, these are the causes of the most churn.
It’s always important to be aware of your process, to know where the problem areas are, and to eliminate them quickly and efficiently. Maybe that means shoring up your onboarding process or better customer service. You want your interactions with your customers to always be improving. If you can’t live up to the success you’ve promised then that’s the easiest way to lose client interest, but there are other steps you can take to mitigate that impact.
Sometimes you can show how you understand your product’s without relating directly to your client’s particular engagement with you. Sometimes you also need to moderate your clients’ expectations. The best way to manage both of these realities and to keep your current customers engaged is by providing consistent and excellent content.
So much time is spent trying to engage with and capture new customers that existing clients fall by the wayside and that quickly turns into churn and profits lost. Current customers need to be engaged with and marketed to just as much as new ones if you want them to stick around. The best way to communicate continued value is with audience-facing content.
That content doesn’t necessarily have to be product-related. KISSmetrics found that strategies like webinars, case studies, and posts on how to better lever their product to the customer’s advantage were powerful means of keeping retention up. These content pieces can also help with the inflated expectations problem and to keep your clients aware of the realities of the industry they are working in with clear, authoritative demonstrations from you.
The best way to find the kind of content that is tailored perfectly to fit what your customers are looking for is by talking to the customer service people that are interacting with them day-to-day. They know what challenges your customers are dealing with and knowing that can help you tailor solutions that will keep them believing in your ability to execute.
Just doing that talking with your active customers is an easily forgotten, but incredibly useful solution to the churn problem. Building a genuine relationship with your customers allows them to communicate their problems to you, and gives you an opportunity to show how you can solve them. This is the best way to build trust andloyalty.
Personal connections also reinforce your identity as a brand to the customers. Before long, they’ll be as invested in your success as you are in theirs. If they understand who you are and what you want to do, if they feel like you are doing something valuable then it’s no wonder that they’d be more likely to stick around.
There are so many tips and tricks out there to boost retention and to keep your customers engaged. From better emails to effective social media engagement, it all comes down to content—your constant and persistent reminder that you are the best option for your ideal customer. If your customers are shown that you are best solution for them and always will be, then they’ll stick with you. That’s the power of excellent content and will provide the kind of loyalty that you’ve always been looking for.