Do you remember that client you’ve meant to connect with for the past four months? Well, it’s been more like one year since you’ve reached out, and they’ve moved on. Did you know companies lose over $1.5 trillion per year in customer churn? It’s a casualty you simply can’t afford. The real tragedy is that better customer service can reduce customer churn by a lot.
Delivering an engaging customer experience has been in the news a lot lately. But while we appreciate that “customer is king,” we still have a bottom line to consider. Almost 70 percent of customers leave because they think the company doesn’t care about them. So, how can you incorporate measurable strategies to address a customer’s feelings and perceptions—two essential elements of customer service?
Let’s consider some of the more common reasons why customers leave:
- They’ve found a better deal elsewhere.
- Your process is too time-consuming.
- They don’t feel appreciated.
- They can’t see the value in the service anymore.
Fortunately, we can remedy these issues with better customer engagement, streamlined onboarding processes, personalized customer service, and a faster time to value. Let’s look at each campaign to explore how small changes in your customer service campaigns can reduce customer churn.
Increase Customer Engagement
Relying solely on memory to track the frequency of contacts won’t cut it. Chances are, more time has passed than you may think. Using an automated CRM or project management system can send alerts when a customer needs nurturing. Be sure to reach out with personal messages and offer multiple channel communication to reach out with concerns and requests using the preferred channel. Remember to be as transparent as possible about your internal processes. People understand mistakes, but if you’re not transparent about them, it’s less understandable.
You can also follow up with push notifications offering sales, discounted services, etc., that speak to what the customer feels is missing from this relationship. Then, follow up with your customer for additional feedback.
Streamline Onboarding Processes
A new client onboarding experience is likely one of the most fragile phases of your business relationship, so it’s important to resolve customer queries as quickly as possible. Harris Clarke, chief operations officer at GUIDEcx, believes having a streamlined onboarding process, complete with clearly defined goals and timelines, helps consumers not feel disengaged or frustrated while learning a new product or service.
“This process should include defining churn metrics—what your organization considers churn to be based on your business model and services—then building your approach on how your team can best minimize churn rates around customer needs and wants,” explains Harris. “These parameters may change based on the types of clients using your services or advancements in systems and technology through a client’s—or even your own organization’s—business lifecycle.”
Respecting your customer’s time is a vital sign of great customer service. The time it takes to resolve even a simple task can make a huge difference in building customer loyalty now and can reduce customer churn in the future.
Realign the Focus of Customer Service on the Customer
How would you rate your team’s customer service? In other words, if you were a customer, would you like doing business with you? Remember, it is 16 times more expensive to bring a new customer up to the same level as an existing customer. The faster you can establish a solid relationship with your new customers, the better.
Be proactive. Get to know your new customer. “Client onboarding should start with one question: What is the client’s goal? Whatever it may be, that response is your opportunity to project how your product or service will meet those goals,” says Peter Ord, founder and CEO of GUIDEcx.
Reduce Time to Value
What’s in it for them? Your new customer needs to know right away that your product offers solutions to their problems. If it takes months for them to see the value in their investment, you may be heading toward churn.
Keep in mind that 80 percent of your future profits will come from just 20 percent of your existing customers. Be proactive in offering services that you feel will benefit your customer the most and reinforce customer loyalty faster.
Today’s new customer means your company needs better customer engagement, streamlined onboarding processes, personalized customer service, and faster time to value. We believe an automated client onboarding software is pivotal to identify and respond to what are typically emotional responses to the customer experience. We feel good about it, and we think you will, too.