How to Reduce Customer Churn

Do your customers have commitment issues? If you have a high churn rate, you may be wondering if it is something you are doing or if your customers are just flaky.

You may never know why customers decide to cancel an order or discontinue your professional relationship. However, if your churn rate continues to rise, you need to take a hard look at how you can reverse this trend. If you don’t, you may soon find yourself without any customers at all.

If you are looking for ways to boost customer loyalty, here are some ideas to help you get started:

Communicate. While no one wants constant calls and emails, if the only time you communicate with your customers is when you want to sell them something this is a problem. Consider follow-up telemarketing calls after customers have made a major purchase to find out if they have questions or are satisfied with their purchase.
Focus on Your Weaknesses. Always be on the lookout for ways to improve your products or services. Figure out what you can be doing better and make it your mission to improve. Further, make sure you are open to change.
Look Over Your Shoulder. Always keep an eye on the competition. Check out what they are doing and see if you can incorporate some of those things into your business strategy. It is also important to remember that your competition is always looking to poach your best ideas so keep on your toes.
Do What You Do Best. If you are known for your outstanding customer service, quick turnaround or flawless products, you need to work hard to make sure that you never ever let a customer down in the area where you really shine. If a customer comes to you because you always deliver faster than everyone else, the one time you don’t deliver on time may be the last.
Find Out Why a Customer Moved On. When a customer returns a product or stops doing business with you, do your best to find out why. Consider calling the customer or sending them an email asking for their feedback. Many customers appreciate the opportunity to give you constructive advice. And even if they have nothing good to say, you can learn from negative feedback, as well. Finally, they may be so impressed that you care that they give you a second chance.

No one likes to lose a customer but the secret to lowering your churn rate is to find out why customers are leaving and make the necessary changes. Likewise, if your customers are happy, you need to keep them that way so they will remain loyal for years to come.