As a business owner, it is important that you are able to find ways of improving the business. And, it’s clear that one of the big focal points of business success is not only being able to come up with ways of attracting customers to your business, but keeping them there.
In order to achieve business success, business owners need to be clear about what it takes to keep customers on side at all times. So, one of the things you need to do is to look at the best way of being able to reduce customer churn in the business. However, this first involves understanding a bit about what customer churn is so that you find yourself well-placed to deal with this.
What is Customer Churn, and why does it matter?
So, the first thing you need to understand is what exactly customer churn is and why it is important for a healthy and successful business. Essentially, churn is the percentage of customers that stopped using your company’s services and products within a particular designated timeframe.
The percentage of customers you lose over a typical month duration is known as your monthly churn rate, and this is a metric that you need to be aware of. While it might not be nice to look at the number of customers you are losing, it is important to understand this so that you can use it to improve the product or service. At the end of the day, it’s going to cost you more to secure a new customer than it is to retain an existing one, so you need to know where you can improve.
Examples of customer churn by various industries
Customer churn, sometimes differs depending on the industry. This is something you need to familiarise yourself with because it is going to be a great way of figuring out where your churn rate lies as a business, and whether this is normal for the industry you are in. Recurly Research offers an algorithm that works out what a particular churn rate might be and compares it with the rest of the industry. For instance, the research notes, that television and streaming industries have one of the highest levels of voluntary customer churn (10.01%),
5 Ways to Reduce Churn
Once you become aware of the churn rate of your business you will be in a better position to look at ways to reduce it as much as possible. There are a lot of things that you can do to reduce churn and keep hold of customers for a little longer. Here are 5 of the best ways your business can work toward reducing customer churn.
- 1. Improve user experience: This is one of the biggest and most effective things to consider when it comes to reducing churn. Your customers need a smooth and seamless experience that will make them come back for more.
- 2. Price: The age-old problem is working out how you can ensure you’re not pricing your customers out, but that you are remaining competitive at the same time as well.
- 3. Command attention: One of the best ways of keeping customers around as a business is to make sure you command their attention. You can achieve this by the way you run the company and the products and services you choose to offer.
- 4. Promote engagement: Promoting and enhancing customer engagement is going to make your customers care more about your business and the services you are offering, and this will make them less likely to want to leave.
- 5. Analyze: Perhaps the most effective way of reducing churn is to determine what makes it occur in the first place. There are a lot of factors that might relate to this, and it’s important to ensure you get this right. Do you ask them when they leave, why they did?
Adding a mobile app
As a modern business, it is important to update and get with the times, and the way to achieve this is to look at how a mobile app can help you. This is one of the best ways of reducing churn addressing all of the 5 ways to improve churn mentioned above. Mobile apps can go a long way toward improving and enhancing customer experience, especially with single-tap access. They allow users to interface with the company simply and efficiently, no matter where they are. It means you stay in their consciousness that little bit longer, and they’re not going to forget about you in a hurry.
So why not consider adding a mobile app to your arsenal? Talk with the team at The AppMatch and we can help you formulate a Churn Reducing Mobile app that will boost your business.