As you might already know, change is the thing that will never change in our whole life. When it comes to products, this is extremely true.
Even your most loyal and powerful customers will switch when they find something better than you. This happens for many reasons. Their needs might change, or they may decide to try some other similar products, and so on.
Yet before we recognize change is a part of business, it’s crucial to stop or at least minimize your customer churn rate.
It’s not that easy to acquire new customers than to get back the existing ones. Do you know? Your existing customers will spend more money on the products and services than opting for new ones, because of the loyalty you have built with them.
This generates more revenue opportunities for your company.
Likewise, simply decreasing customer churn will not be enough. So, you can also take advantage of customer loyalty by getting them back by reducing customer churns.
Now, let’s enter into the main picture of this article: How to create a customer churn and regain strategy using customer feedback. More specifically, we’ll also determine the key reasons for customer churn, and match each of these with the customer churn regain strategy.
Here you go!
How to determine the reasons for your customer churn?
Your stepping point of regaining back your churned customers is figuring out what went wrong in the first place. The simplest yet powerful way to do this is to hear from them directly. All you need to do is collect customer feedback.
Of course, for many businesses, metrics in customer churn rates are far more helpful than knowing the accurate reason why every customer churned off. New tech customer feedback tools will genuinely make this simple by utilizing a public board with a voting system.
When single feedback gets a lot of upvotes, “use that particular submission as your superpower” and build a customer churn regain strategy around it.
Let’s figure out what kind of strategy to use, it serves some crucial things to understand the different types of customer churn. These are named “customer churn factors”.
Logically, all churned customers can be placed into any one of four options:
- When they find no longer use of your product or similar to yours: The customer just needed your product for some time, which has ended.
- When their expectations have changed: The customer now expects something different or new feature which you don’t offer or can’t offer.
- When your competitor wins: Somebody else offers better than you or comes up with attractive discounts.
- When you fail to get the value they expected: The customer no longer saw any return on investment that they thought they would.
The last step is to find and match the applicable feedback to one of these categories. All this takes is a little bit of effort determining the right one.
Why don’t you do it when it's going to reduce your customer churn rate?
Let’s take a brief look at the core customer churn to regain strategies for addressing each of these customer churn factors and getting them back.
- When they find no longer use of your product or similar to yours:
Sometimes, as a result of your hard work, this customer churn factor will put you in the best position. That is, they probably love working on your product while they need it.
However, getting them back isn’t that easy to just simply sit and wait for them to come back.
Here, there are plenty of things you need to check around. The great thing is you already have their email address saved in some database. Take that out and send out some promotional emails this is pretty much to maintain contact. (“Do not spam”)
However, there are a few things that you should keep in mind.
For example, Just sending sales emails to customers who don’t need your services will only result in unsubscribers. Instead, it’s crucial to provide some use case value in your email content.
To do this,
- A simple tip, Utilize content-digest style emails for “satisfied customers”
- Concentrate on content which is similar to the customer industry, rather than keep on promoting a specific product
- “Customer success stories” will change the game, create and share the testimonials with them.
This last point is crucial. A perfect way to provide extra value to happy customers is to increase their profile with a case study. Try this out.
- When their expectations have changed:
The customer’s expectations have changed in a similar customer churn factor to the customer’s journey reaching its natural end.
The major difference is that the customer expectations will keep on changing sometimes while running behind their expectations you may push to tell them “NO” for their feature request. This will show up clearly in our customer feedback. That is, in many cases, the feedback will state that you can’t do something with your product because doing that never gives you any value.
When you struck under these situations, use these 2 customer churn regain strategies:
- Add the feature that has more upvotes, just show them you’re improving with other features with the help of changelog.
- Check the request keenly and show them you arrive with the same results they expect with an existing feature you have.
- When your competitor wins
We all would be aware of the term rational consumer. That is, people will usually select the cheapest product which meets their expectations. We should be wired to maximize value and minimize costs.
Sadly, this means you’ll lose customers when your competitor can offer the same product or service better than you at less rate. This is a hard customer churn factor to overcome with a strategy.
Luckily, you have two options. When customers are selecting between you and your competitor, for sure they will make a cost/benefit calculation.
To regain your customer churns, you have to grab a balance by lowering costs or increasing values.
There are many ways you can change your customers’ cost/benefit calculation.
The most worked strategies are
- Offer valuable discounts for some time: Here, You can charge less price for customers who only need specific features.
- Concentrate on benefits: As a matter of fact, you can’t keep beating your larger competitors on price. However, you can still beat them on providing things that customers fall for like customization, customer support, and targeting features that give them value.
- Get on partnerships: Sometimes your competitor offers multiple services that you can’t pick up in a short time. So, a good way to overcome this is to get into partnerships with other successful companies with similar target audiences. So that you can plan for a combined offering.
This helps to regain your customer churns when you lose to your competitors.
- When you fail to get the value they expected
One of the most common customer churn factors is customers failing to get the value they expected.
This can happen majorly for two reasons:
- Your product wasn’t the right choice for them
- They don’t know exactly how to make use of it
You can determine if your product wasn’t the right choice for them or they didn’t know how to make use of it through your customer feedback:
- For example, a complaint that you can’t be really helpful because your product is not exactly aimed at means the customer had the wrong expectations.
- A complaint that your product can’t be helpful when it can means that the customer doesn’t know how to maximize the value of your product.
“Content marketing” and creating “help pages” for features can help solve both of these problems. At least, it can guide the wrong people from signing your product. And, an effective content marketing strategy can also help existing users to make the most use of your product.
Here’s some content framework that would help to reduce the customer churn and regaining them back
- Try out webinars and demos to onboard new or existing customers
- Create more how-to guides to increasing customer usage
- “Customer success stories” would help customers benefited from our product
- Utilize ebooks and whitepapers to help put our product in context
These steps would help customers to understand and use your product.
When you determine a new customer churn trend here, it’s also a great source of content inspiration.
Never avoid learning the importance of regaining lost customers
Getting back lost customers surprisingly overlooked the growth strategy. The focus is often on eliminating customer churn but having a customer churn regain strategy is just as crucial.
This is mostly impossible without gathering customer feedback.
Because without feedback you can’t determine your core customer churn factors. That is, you won’t know why customers switch.
However, once you have all this data, regaining lost customers is a breeze. Luckily, there are only some counting reasons people stop working with a business. When you keep these in the mind, regaining customers becomes a walk in the park.