Despite being quite exacting, sometimes modern consumers forgive mistakes. You can avoid customer churn in 67% of cases if you manage to fix an issue at the first engagement. People will appreciate it when you immediately do something to help them. But you need to make sure the same customer experience failure won’t happen again. Otherwise, the second time anything goes wrong, you risk losing a buyer forever. 60% of consumers will consider going to competitors after 2-3 instances of poor service.
Of course, the best way to cut customer churn rates is to prevent any bottlenecks from the very beginning. It’s essential to know the top reasons for customer churn. They block you from reaching out to customers and interrupt the customers’ journey.
Once you take steps to eliminate these issues, you will enjoy improved customer satisfaction, increased customer success, and growing revenue. The studies say that a 5% customer retention increase boosts profit by 25-95%. Sounds exciting, right?
Find out more about how to reduce customer churn and always reach customers in the article about:
- Why are the troubles with reaching out to customers among the top reasons for customer churn?
- Five issues that block you from reaching your customers and how to reduce customer churn
- How to use Inkit’s platform to eliminate top reasons for customer churn
Why Are the Troubles with Reaching Out to Customers Among the Top Reasons for Customer Churn?
Regardless of who you are, a small business in retail, or a world-famous tech provider, the quality of customer service matters. When you don’t respond in time, forget to send critical updates, delay purchase invoices, or worsen your brand’s impression in any other way, people leave. Issues with reaching out to existing and potential customers contribute to growing customer churn rate and financial losses.
According to recent data, 24% of customers leave because of poor onboarding, 19% because of weak customer relationships, 17% because of poor customer experience, and 12% choose to switch to another service when you ignore their complaints. If you think about it, improved customer reach can help solve all of these top reasons for customer churn. Quality communications facilitate the onboarding process, strengthen customer relationships, and bring a range of other benefits.
To help you make sure you can always reach your loyal customers and new leads, we’ve identified five key issues that affect your customer reach. Keep reading to find them out and learn how to reduce customer churn with reach optimization.
Five Issues That Block you From Reaching Your Customers and How to Reduce Customer Churn
We’ve added tips on reducing customer churn to each of the blockers caused by poor reach enablement on the list. You can immediately get useful ideas on reducing customer churn below.
#1. Lack of Data Validation Procedures
Without email and address verification, you will repeatedly send messages to non-existing customers. Needless to say, you will never reach them and waste a lot of time. Waiting for too long, people will just go away to find a similar product at another place. You won’t even manage to send them a goodbye message because you don’t know the correct address.
How to reduce customer churn
To improve the accuracy of emails, implement double opt-in. For example, when someone subscribes to products and services offered by SaaS companies, they usually need to re-confirm their emails with the link.
For reaching out to customers using their physical addresses, adopt address verification software. The tools like Inkit can automatically autocomplete, record, standardize, and validate addresses. This protects you from misspellings and allows you to build a reliable customer base.
#2. Bad Onboarding Experience
The onboarding process is thin ice. When customers sign up for your product, they are still unsure whether they need your service and may easily churn. If you disappoint them at this stage, remarketing will be very difficult. The most common onboarding problems include insufficient instructions, overly long onboarding process, and an unclear roadmap. Do your best to avoid them.
How to reduce customer churn
Timely communications can explain to new leads what to do next and guide them through the procedure. Use website pop-ups to help customers if they get stuck. Make sure your explanations are as clear as possible. Send welcome emails, prepare user guides, add website chats, and adopt other ways to stay connected with customers.
#3. No Personalization
33% of customers admit they have abandoned a company because of insufficient personalization. People like to feel special and always want you to remember their name, contact details, order history, preferences, and other relevant details. By sending template messages, you show indifference and lose to companies that leverage personalization.
How to reduce customer churn
Integrate software that would allow you to tailor the content of all communications in real-time. There are multiple tools out there that can automatically generate unique messages based on user data and previous interactions. Apart from making customers happy, the data collected with these tools will also allow you to investigate why people churn.
