Post by account_disabled on Apr 30, 2024 10:39:12 GMT
Customer churn afflicts a large portion of companies. And, really, keeping this rate at low levels is essential for the health of a business. With that in mind, here are some tips on how to keep your consumers loyal and satisfied, reducing customer turnover. In time, it is worth explaining that customer turnover consists of the percentage of customers who stop buying or using a product or service from your company that they have already used and stop generating revenue. Generally, the calculation is nothing more than dividing the number of customers lost in a quarter by the number of customers you had at the beginning of the quarter. If, for example, at the beginning of the quarter your company had 500 customers. At the end of this period, 25 customers were ordered. This represents a churn rate of 5%. How to reduce customer churn? Now, you will know some tips, according to Hubspot , about what you can do to reduce customer churn.
According to Sunil Gupta, Edward W. Carter Professor of Business Administration and co-chair of the executive program on driving digital strategy at Harvard Business School, companies should focus their efforts on the most profitable customers who are close to churning. “If I offer an incentive to customers who are most likely to churn, they may not leave the company, but will it be profitable for me? The Architectural Services Email List traditional method is focused on reducing churn, but we argue that the objective should be to maximize profits, and not just reduce churn”, says Gupta. The Harvard Business School professor also states that, in addition to redirecting your attention to a more profitable group of consumers, it is also important to take into account the likelihood of that customer responding to your re-engagement communication.
Providing offers, discounts and loyalty programs for special customers is a way to make your audience feel valued and special. However, it is important to think about some points when defining when these prizes should be offered. To do this, analyze the customer journey with your company and your business model. For example, presenting an offer or a discount on the renewal fee to customers who are close to the end of a contract can be a decisive move to keep them with you. The customer's needs must also be taken into account. When you identify that the customer realized that your product or service was not exactly what they were looking for, you can offer an incentive by creating a personalized resource or strategy so that they can achieve what they wanted. with new technologies that emerge, with new fashion that arrives. So, follow market trends and advances to continue remaining relevant and valuable in the eyes of your audience.
According to Sunil Gupta, Edward W. Carter Professor of Business Administration and co-chair of the executive program on driving digital strategy at Harvard Business School, companies should focus their efforts on the most profitable customers who are close to churning. “If I offer an incentive to customers who are most likely to churn, they may not leave the company, but will it be profitable for me? The Architectural Services Email List traditional method is focused on reducing churn, but we argue that the objective should be to maximize profits, and not just reduce churn”, says Gupta. The Harvard Business School professor also states that, in addition to redirecting your attention to a more profitable group of consumers, it is also important to take into account the likelihood of that customer responding to your re-engagement communication.
Providing offers, discounts and loyalty programs for special customers is a way to make your audience feel valued and special. However, it is important to think about some points when defining when these prizes should be offered. To do this, analyze the customer journey with your company and your business model. For example, presenting an offer or a discount on the renewal fee to customers who are close to the end of a contract can be a decisive move to keep them with you. The customer's needs must also be taken into account. When you identify that the customer realized that your product or service was not exactly what they were looking for, you can offer an incentive by creating a personalized resource or strategy so that they can achieve what they wanted. with new technologies that emerge, with new fashion that arrives. So, follow market trends and advances to continue remaining relevant and valuable in the eyes of your audience.
