It’s inevitable that you’ll lose customers on the road to success; some degree of attrition will always be present since it’s impossible to be everyone’s cup of tea. But keeping your customer churn at a minimum is one of the most important steps towards revenue growth. A Harvard Business School report claims that on average, a 5% increase in customer retention rates can lead to a 25% – 95% increase in profit.
Customer churn is a sign that your customers are dissatisfied with some portion of the customer experience your business provides. Identifying the cause of this attrition is essential to reducing its rate and therefore increasing your revenue. The cause of your specific churn may not be immediately apparent; discovering the solution can be a process of trial and error. Engaging with customers, paying attention to their needs, and improving the customer journey you provide are all steps you can take towards reducing churn.
Listen To Customer Needs
To prevent customer churn, you’ll need to know what your customers want and expect from your brand. Attrition is often due to a poor customer experience, which can be caused by a gap between their expectations and the experience you provide. You can prepare for this by being proactive about meeting their expectations and communicative about the experience you provide. How do you anticipate their expectations? You listen!
You can learn the most from what people say about you when you’re not in the room! Social listening shows you what your customers say about your brand in their personal social media conversations (as opposed to the direct mentions to or comments on your brand’s page.) It can give you insights into their honest opinions of your products, and what they’d like from you in the future. If you listen carefully to your customers on social channels, they might explain some of the causes of your churn from their point of view. You can also jump into the conversations you identify with listening to become more involved in your customers’ social customer journey.
Monitoring the conversation around your industry and your competitors can show you what customers perceive is missing, and allow you to preemptively provide it. Using the insights you gained from social listening data, you can encourage engagement (an important step towards reducing churn) by providing relevant information to your customers’ interests and needs. Knowing your customers’ interests and desires will help your team create the most effective ads for your target demographic. Customers whose needs are being met and who are engaged with your content are less susceptible to attrition.
Engage with Customers
Customers who feel valued are more likely to feel loyalty towards your brand. So how do you make your customers feel valued? Like your friends, sometimes your customers just want you to listen. Showing that you’re there to help and listening to their concerns on social media will enhance their customer experience and reduce the potential for churn.
Surveys show that 70-80% of customers who research companies before making a purchase do so on social media, so eyes will inevitably end up on your social pages. This is the perfect opportunity to show them that you’re engaged with your audience! It’s essential to leave no questions unanswered. 77% of Twitter users report feeling more positive towards a brand when their tweet has been replied to by the brand’s Twitter account, and 71% of consumers who have a positive experience with a brand on social media are likely to recommend that brand to others. This means that social media is an excellent platform to work on your reputation management and turn followers into brand advocates. An engagement based strategy allows you to not only reduce attrition, but to increase your customer base at the same time!
On the other side of the coin, the same study reported that 78% of people who complain to or about a brand on Twitter expect a response within an hour. It’s crucial to stay on top of your brand’s social media comments and posts in order to meet customer expectations. Both your response itself and the information your customers provide you with on social channels will help you reduce attrition.
Establishing open communication with your customers and brand advocates on social media allows and encourages your customers to provide you with important feedback that can help you improve your product and service, therefore further reducing customer churn. Nuvi Engage can help with your keep communication open by allowing you to quickly respond to customers and keep track of the conversations you’re engaged in.
Improve Customer Journey
Strategically planning your customer journey by putting yourself in your customers’ shoes allows you to improve their customer experience. An improved customer experience (and social customer experience) will lead to less churn for your business. It is essential to pay attention to the parts of the customer journey that are often overlooked in order to fill in any cracks in the foundation of the process. As social media use, social media advertising and e-commerce continue to rise, the social media touchpoints in a customers’ journey will become increasingly important to keeping customers.
Several years ago, Hertz was struggling to make their customer journey smooth and easy. Their customers were dissatisfied with the customer service options the company provided and therefore they experienced a large volume of churn. Their 1-800 customer service line only operated Monday through Friday and they didn’t monitor their social media accounts, so there was no live customer support on the weekend. This caused a great amount of frustration for weekend travelers experiencing issues with their rental. Customers expected the large global company to have customer support 24/7, not just Monday through Friday.
There was a snag in the customer experience, and customers were unable to complete the action they wanted to take and receive support.
Hertz solved this customer experience hiccup by implementing social customer experience strategies with Nuvi’s solutions. Hertz was empowered to listen to their audience across social channels, to organize the issues arising through the use of tags and notifications, and to implement solutions to engage with those issues.
As a result of repairing their customer journey, Hertz decreased the negative sentiment in the conversation around their brand by 24% vs. the previous year while seeing a 74% increase in incoming messages. They converted half of their concerned customers to brand advocates and saved $3.5 million in the first year after investing in social customer care and improving customer services. Their efforts were rewarded with a Shorty Award for best in class customer care. Hertz identified the issues customers were experiencing in their customer journey, and improved their post-purchase customer care to keep their customers returning, reducing churn and increasing their bottom line.
Are you aware of the steps your business needs to take to reduce churn? Whether you need help identifying or implementing a strategy to address the causes of customer attrition, Nuvi has solutions.