Every time you lose a customer, you also lose $200 in revenue, on average. That figure can quickly climb depending on the value of your products or services!
This number of lost consumers is called the attrition rate. It is one of the indicators to follow to assess the health of your business. To calculate it, it’s simple: divide the number of lost customers by the total number of customers and multiply the result by 100.
For example, if you have 500 clients and in the first quarter you lost 32 clients, the attrition rate will be: (32/500) * 100 = 6.4%
Ideally, this rate should be monitored every month so that you can take action quickly. Besides: what can you do to avoid losing customers?
Read further to get an Answer to this article!
Offer top customer service!
After a bad customer service experience, 39% of consumers shun a business for two years. The first step to reducing your attrition rate? Offer high-quality customer service!
Buyers like to be considered. Be responsive to respond to your customers’ concerns, concerns and questions. Whenever possible, reply to an email or social media message within 60 minutes. The best is to immediately provide a solution (even temporary) to calm the customer and show him your professionalism.
Plus, add personalization to your interactions with consumers.
In addition to using their names, analyze your previous exchanges for reference. It shows that you care about them. Also, remember to send them a little note on their birthday and bring a personal touch to each exchange.
Monitor dissatisfaction closely
To monitor dissatisfaction closely, regularly calculate your attrition rate. Don’t wait for the end of the year! Monthly, every 3 or 6 months, assess this indicator to be responsive.
In addition, continuously check your customer satisfaction metrics, such as the CSAT or customer satisfaction score, the Net Promoter Score (NPS) and the Customer Effort Score (CES). They reflect how buyers feel about your services. If you get bad scores, it means that discontent is mounting among your customers and that you have to react before losing consumers.
Improve the journey and the customer experience
1/3 of consumers leave their favourite brand after just one bad experience. After 2 or 3 negative interactions, 92% completely abandon the business.
From the first contact with your products or services, offer quality and relevant content that allows the lead to overcome his needs. Until the purchase, feed it with high-value content, personalized and adapted to each stage.
Then don’t forget! Please continue to send them content that will help them make the best use of your products and services. Guide him to additional articles, which will allow him to meet his needs fully.
Finally, consider a loyalty program to reward your loyal customers and give them an additional reason to re-buy from you.
Anticipate customer disengagement
You can reduce the customer losing rate by 67% if you intervene very early. The secret? Track down the warning signs of a high attrition rate. Seek to identify:
- Decrease in engagement: Decrease in the time spent on your site, fewer shares and likes on social networks, unsubscribing to the newsletter.
- You are increasing abundant cart or cancellations of your service.
- Customer complaining more and more about your service.
- Your Net Promoter Score is potentially decreasing.
- A drop in orders.
- Dissatisfaction is posted on review sites or your social networks.
Analyze the profile of customers who have left
Before defining a customer retention strategy, we must first identify the cause of their departures.
Send a survey with 1 or 2 questionnaires right after a contract termination, account closure or cart abandonment to collect customer feedback. Call them and ask them why they left. You’ll get a helpful answer or a hint that you can work with to improve your company sales.
Then analyze their responses and find commonalities between the reactions or their profiles. That will allow you to define a successful recovery strategy and anticipate the next departures more easily.
Communicate on the consequences of termination
Customers do not always understand the consequences of leaving. Before getting to the final deletion of their account, clearly explain the risks they are exposed to by renouncing your services.
Be careful; this is not to wave a sword of Damocles over their heads. Instead, remind them of your value proposition and what sets you apart from the competition, for example.
Let them know that they are at risk of losing essential data, as well as the benefits you provide to your long-time customers.
It costs five times more to attract a new buyer than to retain an existing one. By applying these six tips, you will avoid losing customers.
The key: Sustained growth and guaranteed sustainability!
Have you found something to improve in your customer journey? Please share your thoughts in the comment box below, or consult with an expert to identify them to grow your company’s sales and revenue.