Churn Happens — but You Can Turn Things Around
Does the word “churn†make your stomach do some churning of its own? This term for customer attrition and replacement describes a common, inevitable part of any business’s growth, development and maintenance. Customers come and customers go as a general rule of business. But it’s a great deal easier and more cost-effective to keep the customers you have than to spend enormous amounts of marketing resources on dredging up news ones in huge numbers. Fortunately, it’s possible to bring many of those prodigal customers back into the fold
Drip Marketing Campaigns
Sometimes customers don’t mean to disengage actively from a business. Your MIA customer may simply come up against some objection or other that give them cold feet about proceeding further. They may have gotten distracted by other issues that caused them to leave shopping carts abandoned. They may even be too puzzled to know what they should do next.
Drip marketingOpens a new window campaigns can help you gently lead these customers back into a more active relationship with your brand. A typical drip marketing campaign is constructed to release targeted emails at specific points in the sales funnel, at particular times of year (such as seasonal sales triggers) or in response to suspected objections.
For example, say your customer was initially excited enough to go forward with a major transaction, only to disappear after you sent over the necessary paperwork. Perhaps that customer needs to receive a short email article or a link to a blog post explaining what that documentation is and why it’s a good thing to sign those documents. This is your opportunity to reignite the excitement that caused the customer to pull the trigger on the transaction in the first place. You may even need to send a series of periodic informational pieces (not sales pitches) to keep customers’ enthusiasm sizzling. Slowly but surely, they recommit to the relationship — and you’re back in business.
Special Offers
“The squeaky wheel gets the grease,†goes the old saying. Lost customers may be sending you a loud, clear message that they could use some extra enticement to keep the business relationship rolling. Special offersOpens a new window can prove a highly effective marketing strategy to retain these valuable customers, some of whom may have been loyal to you for years.
ou should gear your special-offer strategy toward a specific segment of lost customers: those who likely departed over perceived price or value objections. These folks may have been perfectly happy with the quality of your products or services, but they simply didn’t feel that they were getting a good deal. If you offer a multi-tiered or multi-featured service, the easiest way to win back some of these individuals back is to offer a free or discounted upgrade from the service level they previously enjoyed. If your customer has demonstrated a preference for base models and limited service levels, a straightforward price cut may be the way to go.
Surveys
“How are we doing?†Tell us!†Customers love to hear this from businesses they’ve frequented in the past. Not only does it show that you genuinely care about how well you’re treating them, but it also gives them an opportunity to vent any concerns or dissatisfaction they’ve been keeping to themselves. Customer satisfaction surveysOpens a new window can make all the difference in retaining customers who feel undervalued by your business. If you have customers who might be thinking about leaving, asking them how they feel about your products and services could restore their motivation for staying with you.
If your customers have clearly fled already, it’s time to send out a churn surveyOpens a new window . This piece acknowledges that the customer hasn’t used your products or services for a while, asking questions that allow the customer to express grievances or recommend improvements. A well-timed churn survey can make lost customers reassess their relationship with their business.
Promoting Improvements
“We heard your concerns, and we fixed the problem!†This single message can carry a great deal of power in your attempts to re-win dissatisfied customers. Relatively few customers drop away from a business or brand for emotionally neutral reasons (such as relocating out of the service area or simply finding a better deal from a competitor). The majority of customers leave because they’re unhappy with what they’re getting. Sixty-eight percentOpens a new window feel like they’re received poor treatment, and another 14 percent leave due to unhappiness over products or services. By addressing these sore spots and promoting the changes in your marketing:
- You’re showing that you valued your customers’ opinions enough to take massive action.
- You’re demonstrating the key value of responsibility.
- You’re assuring them that the problem that drove them away from your brand no longer exists.
If your customers liked your offerings but hated your customer service, or vice versa, they may feel that your “new and improved†campaign gives them sufficient reason to try you again. Just make sure you’ve actually made the changes — because a disgruntled customerOpens a new window can prove far more damaging in the long run than a lost customer.
Don’t bust your marketing budget on winning new customers when you could be winning back established customers more easily and cost-effectively. Give these strategies a try, and watch your old friends come back to you!