At Radix, we want your company to achieve the lowest possible churn rate, and that is why below, we will explain three crucial points to do so.
1) Concentrate on how your product/service helps:
If a consumer stops purchasing from you, it is either because they do not have the problem they once had, or because they are unable to use your products to solve the issue they want.
In order to recapture a customer, you must restore the basis of your commercial relationship, which is done by proving to them your company can solve their problem.
Each person on your email list came to your company for a reason. Even if they’re “just browsing,” some aspect of your company’s promise caught their attention. In order to reengage customers, you need to remind them of what brought them there in the first place. In place of guilt-tripping them into returning just because they previously purchased from you, remind them of the benefits that your company may offer. The best way to get what you want (retention) is to focus on what your customers want.
2) Identify and resolve the issues that contributed to churn:
The average SaaS product loses 2% to 20% of its customers every month. Every one of these customers had a different reason for leaving. Instead of attempting to shame your customers into staying, you should assist them in overcoming the issue that prompted them to leave in the first place. A tone of confession, not empathy, is needed at this point.
Many factors can contribute to churn, including an inability to identify the right product, difficulties in getting set up, a poor customer experience, or changing company demands. As it speaks to the fundamental reason for the churn, a retention campaign that directly tackles the issue that generated churn and gives a straightforward next step has a high likelihood of success.
The first step is to examine customer behavior to identify frequent reasons for churn. For example, new customers frequently experience difficulties completing a given stage in onboarding, resulting in churn. To keep these consumers, create a campaign that addresses the root reason for churn. In this scenario, you should present a straightforward and explicit next action that will assist them in moving towards their objective, or even a FAQ to help solve typical difficulties.
With Radix, you can have countless data that will give you insights on what may be going not so well so that you can prevent churn.
3) Monitor and manage value on a proactive basis:
Once a consumer has cancelled a subscription or stopped using your product, it will always be difficult to re-engage them. The ideal churn-saving strategy intervenes before your customer ever decides to churn.
Customers often quit utilizing (or stop repurchasing) things because they don’t receive enough value out of them to justify the price, not because they are forgetful or disloyal. Look for customers who aren’t using paid-for capabilities to find those who aren’t receiving enough value (and hence are candidates for churn).
The key to success is to measure behavior that corresponds to a customer receiving value. In the case of consumer products, the value will be linked to usage. However, make sure you establish a threshold that excludes counting logins or app openings on their own because momentarily opening your product rarely offers value.
Understanding why each customer buys your product and then monitoring whether they perform the activities necessary to attain that objective allows you to give unique and tailored solutions. This scorecard can serve as the foundation for high-impact business evaluations with customers if your organization has an account management team.
Strengthen your relationships with your customers.
Better connections are one of the secrets to rapid growth. To establish a successful business connection, deliver timely and individualized contact that provides precise and valuable advice to help them accomplish the work that they’ve hired your product to do better.
Talk to customers about the value they may receive, help them overcome the issues that prevent them from utilizing your product, and most importantly, establish your connection before your customers ever think of missing you.
