Negotiating with customers to convince them to stick with us is not capitulation. Let us be loud and clear while making this statement. We are in fact helping our business as well as our customers because while we ensure to provide the products and services of the highest quality to our customers, we are helping our business to sustain as well. On the other hand, if we ignore customer satisfaction, do not render high-quality customer service, and do not bother when dissatisfied customers leave us, we will soon be winding up our business.
Amazingly, a number of companies do not take the right steps to stop customer churn. They think that when a few customers leave, they can get the gaps filled by acquiring new customers. This is completely a wrong strategy. According to the findings of Forrester research, the cost of acquiring new customers is five times higher than what it takes for satisfying the existing customers and retaining them. Even a report released by the Harvard Business School says that if businesses achieve even a 5% increase in their customer retention rate, they can see a five-fold or even much better profitability figures.You should therefore put in place appropriate processes for ensuring to provide high-quality customer service software to your customers. You must train your staff suitably and impart in them the right type of customer service skills so they work in tandem with you for making your customer retention efforts successful. Let us now find out the ways to reduce customer churn.
- Do an honest analysis to find out the reasons for customer churn.
You must first find out why customers are leaving you. The only and perhaps, the best way to find this out is to have a frank talk with the customers. It is better to get in touch with them over the phone because any other mode of communication may delay things. Remember that once your existing customers switch to your competitors, it may be difficult for you to get them back.
While talking to them, the way you speak should demonstrate to them that you have genuine concerns for them, your intention is to ensure that their needs are fulfilled perfectly, and that that is the reason you want to know if there is something wrong with your products or services. Customers should know that you are willing to rectify mistakes, if any, and plug the loopholes or lacunae in your customer service. You should let customers know that you want to address issues, if any, with your products or services. In other words, getting in touch with these customers immediately and communicating with them will help you know the reasons for their leaving.
- Ensure that your customers are engaged with the products you are offering them.
Engage your customers and make them eager to come back to you. It is by conveying to them directly and indirectly that they will benefit immensely by using the products you are offering. By sending news updates on a regular basis, you can make them remember the value of your products, the services you render, and the offers you have been extending to them periodically. You should follow this step on a consistent basis. The news updates you send to them should cover details of your special offers, deals, discounts, incentives, and sale announcements.
- Educate your customers on a regular basis.
You should also make it a point to educate your customers on a regular basis. This is for reminding them of the value of the products you are offering and the services you are rendering. Remember that customers’ memory is short. When they are lured by another competitor, they will forget what all you have done for them. That is the reason you are advised to keep in touch with them by sending to them regular newsletters, support materials, video tutorials, etc. You can offer free training, conduct free webinars, and organize free demo sessions for educating them. In short, you are not only supplying products of very high quality, and rendering the best possible service but are providing them with the required training to use your products in the right manner so as to derive the best benefits out of them. By adopting this step, you can certainly reduce customer churn.
- Know your most valuable customers.
As a few experts point out, every customer is valuable. But you may have some customers who are more equal than others. Your focus should be more on these customers which mean that you should be ready to travel the extra distance for ensuring that they get top-class customer service.
Of course, you should not ignore other customers because these customers can also grow into big ones. They may become highly valuable in due course of time. Ignoring them and not paying adequate attention to the customer service aspect for these customers may reflect badly on your company. You should educate every customer service representative on your roll that it is wrong to under-estimate customers. Your customer service executives should also be made aware that they should take all possible steps for retaining your highly valuable customers.
- Keep improving your service.
You should always look for ways for improving your customer service. You should keep abreast of the market developments, new innovations, and the key strategies adopted by your competitors so you can render the best experience to your customers. If you keep updating your knowledge and expertise and those of your executives, you will be able to have the latest customer service skills. In short, if you keep focusing on the aspect of bettering your customer service on a constant basis, you can certainly succeed in your efforts to reduce customer churn.