Unlock the key to long term customer loyalty
If you're experiencing a high churn rate, it can be challenging to keep up with the pace of marketing and onboarding new customers. In addition, losing repeat business means that you're probably not satisfying your customers, and they’re not recommending you to others. Consequently, it's crucial to act fast.
In this blog post, we’ll explore different strategies that can help you tackle high customer churn rates. These methods are practical, insightful, and can be implemented by any small business owner.
1. Undertake research
Start by reaching out to your customers to identify why they’re leaving. You can use external research or speak to your customers directly by email or phone. Gather insight about their experience, and address the reasons why they’re leaving. It could be that they are unhappy with a product, the customer service, or the delivery process. Or it could just be they forgot about you! Once you find out what it is, then you can take targeted action to address the issue.
2. Send a newsletter/email
One effective way to re-engage with your customers is by creating personalised newsletters and emails. Acknowledge the last time your customers had contact with you, reference what they purchased in the past, and ask what you can do to help. Share new products, provide exclusive discounts or promotions, or offer tips on how to better use your products or services. Personalising your content will make your customers feel valued and appreciated.
3. Invite to an open day
Organise an open day or an event that will attract lapsed customers. This is an excellent opportunity to reconnect, show them around your premises, have corporate hospitality/lunch, and meet your team. Make sure your lapsed customers feel special and that you value their business. You could also acquire insight about what they’re looking for in a product or service, and what it would take for them to come back.
4. Meet in-person
A face to face visit can help restore a relationship that may have turned sour due to changes in personnel or poor customer service. Schedule a meeting with a company decision-maker, and find out what's going on in their world. Identify what they need, then offer added value or benefits that they could gain if they approached your business again. It's essential to rebuild and strengthen the relationship over time and show you’re committed to making it work.
5. Offer an incentive
Consider offering loyalty rewards to your returning customers. Look at their purchase history and identify what's important to them. Offer added value but in a way that’s not detrimental to your business. This can help persuade lapsed customers to give you another chance, and demonstrate that you acknowledge their loyalty.
Losing customers is never an easy experience, but by using the strategies discussed, you can tackle high churn rates, build customer loyalty and strengthen relationships. These ideas are easy to implement and can help you recover lapsed customers while making them feel valued and appreciated.
By listening to your customers and taking targeted action, you can turn potential churn into loyal customers, who will recommend your business to others. Don’t let a high customer churn rate get in the way of your business's success. Discover more tips and advice in our sales and marketing glossary and how to create a sales strategy infographic.