Few important tips to stop sudden customer attrition

It is always believed that a business becomes successful when it doesn’t have too many unhappy customers. Customer attrition level is proportional to whether your business attains great heights or success. 

• To follow a customer retention policy, all you need to do is reduce the customer churn rate. 
• All you need to do is address customer churn. 

What is a Customer Churn?

It has a impact on your business as it lowers your percentage of profit and revenues. Before diving deep into our discussion, all we need to do is understand some basic concepts like customer churn. Customer churn is often calculated by the number of customers who tend to leave your company during a given time. 

1. The churn rate indicates how your business is performing in keeping customers by your side. 
2. Now one question that often comes to mind is: Why does the churn rate matter so much from the business point of view? The answer to your question is, as it costs too much for customers to stop doing business with you.

Churn is a real headache for many companies, as it shows how good or bad they are at keeping customers by their side. There are two reasons why churn rates matter. 

• The very first reason is the financial aspect of churn, which causes much trouble. 
• According to the latest statistics, companies often lose a lump sum of money per year due to customer churn. 
• The Forrester report suggests that it costs at least five times more money to acquire new customers than to retain the old ones. 
• It will cost you 16 times more to bring a new customer up to the same level as that of existing customers.

The second reason lies in the fact that the more customers you can retain in your business, the more revenue you accrue from it. According to the latest report published by Harvard Business School, an average five percent increase in customer retention level suggests that one can earn around a 25% to 95% increase in profit.

1. It is believed that 65 percent of the business comes from all the existing customers. 
2. Customer retention is the main driver for generating lumpsum amount of revenue for a company.

Some of the important tips and strategies that should be followed to reduce customer churn are as follows:

•        Analyze why churn occurs
•          Engage with your customers
•         Know who is at risk
•         Target the right audience

•      Analyze why churn occurs:

While doing business with your customers, you should find out why a customer decides to leave your business without any kind of prior notice. One of the easiest ways to find it out is by talking to them. Getting your customer on the phone is the simplest way through which you can still make them feel that you care for them, no matter what the situation turns out to be. Sending them a customer feedback form to get an end result from them is a lazy and worse path to follow. One should talk out with their customers over the phone to find out their feedback about your products. It helps you find out whether your services or products work out for them or what exactly caused them the trouble. This helps you to analyze the churn rate and work to reduce it on an ASAP basis.

•     Engage with your customers

Another active way to reduce churn rate is by interacting with your customers, regarding the products. This kind of marketing strategy is referred to as relationship marketing. Always prioritize their demands and start solving them so that it makes them feel that they are valuable. One can engage with the aid of social media channel. Therefore, by creating versatile content and also by showcasing the benefits of the products, you can maintain an active engagement with your dedicated clients. To retain these customers, all you can do is offer attractive packages and discount coupons so that your customers don’t turn their backs on your business but rather enable them to stay. Email marketing campaigns, according to Marketo, appear to be an efficient customer engagement channel for all kinds of B2B companies to reach out to their customers. 

•     Know who is at risk

The best strategy to avoid churn is to know which customer may leave you at the earliest. There is a group of customers who will leave you soon. It is the best possible tactic, with the aid of which you can understand which customers will leave your business without any kind of prior notification. Identifying at-risk customers is the best method for B2B companies to avoid losing business with a valuable client. According to the latest strategies, 35 percent of B2B companies have often used these tactics to reduce customer churn. The best tactic is to follow up with all those customers whom you may have a fear of losing. This helps you prevent customer churn. 

•    Target the right audience

While preventing any customer loss or churn, it is necessary to target the right audience group. No matter how sophisticated your retention tricks may be, they may all go in vain if you target the wrong audience. All you need to do is talk about the long-term value of your product, and you get the right set of audiences. If you talk about the cheap and free services of your products to your customers, then there may be a chance that you may lose your customers in the middle of your business. 

If you provide good customer service to your clients, then the retention rate will increase instead of going down. Customer churning is associated with the value or quality of your products. It depends on the after-sale service or the customer relationship service that is provided to your valuable customers.