Do you know how important customer churn rate is to your business growth? A company won’t be able to achieve growth if the customer churn rate is more than 10 percent. This will have a negative impact on the profitability, since you will be burning money on marketing to acquire new customers.
Here, we will offer you some tips, like using live chat customer service, that will help you to reduce the customer churn rate and grow your business at the same time.
How To Reduce Customer Churn Rate
1. Avoid Making Bad PR Decisions
Bad public relation (PR) decisions can have disastrous results. For example, when Xbox One management’s decided to launch a console that required a persistent online connection, it resulted in a backlash from fans. They considered this requirement, coupled with discs becoming useless after initial installation, to be a major inconvenience.
While the company later retracted from its bungled decisions, the sales of the company languished due to it poor PR decisions and customer service. Today the company’s flagship console is lagging far behind in terms of sales as compared to the rival Sony’s PS4.
2. Get Feedback on Customer Satisfaction
Another important tip to reduce the churn rate is to utilize surveys regarding customer satisfaction. Surveys can provide a deep insight about the customers. You can use get customer satisfaction feedback through social media polls, live chat customer service, or using online survey tools such as Survey Monkey.
3. Remind the Customers about Product / Service Value
Many customer may not understand the value of product or service they are getting for their money. You should make it clear to customers the value you deliver at the price you ask.
Consider collecting testimonials and metrics that show the impact the product is making. Show them how the product is helping them save time, be more productive, or make more money. Regularly highlighting the value of the product/services will make your customers remain committed and loyal to you.
4. Provide Incentives to Regular Customers
The single most important way to reduce the customer churn rate is by providing incentives. The customers are more likely to remain loyal if they are offered incentives such as discounts and special promos.
Remember that in the end, it all comes down to money. Customers are like a heartless lover who won’t hesitate from switching if a better offer is made by a rival. Offering monetary incentives and live chat customer support will more likely make the loyal customers remain committed to your company.
