Why is it that we work so hard to win new customers only to shift our focus to the next prospect instead of focusing on the success of the customer we just won — and then we are surprised when our cutomers churn?
While rarely would businesses agree with that statement, the actions many businesses take after winning the deal take them down the same pathway.
Let’s first ensure we are on the same page regarding what customer churn is, then let’s review four critical tips for reducing it.
What is customer churn?
Customer churn is simply the percentage of customers you lose in a given period.
SaaS companies pay close attention to churn as the business model relies on keeping existing customers and, as a result, enabling faster business growth through these existing, or subscribed, customers.
Four Tip for reducing customer churn
How do you keep churn in control?
#1 Remember WHY the customer bought your product
They bought your product because they had challenges to overcome.
And, based upon demos and customer references they believe the solution can do it.
Don’t sell your solution unless it can really solve their problems.
#2 Remember WHY they bought from you
They trusted that you and your business, would help them implement your product/solution and that you would help them work through it every step of the way.
Help them solve their problems and focus at least as much energy on making them successful as you did selling to them.
#3 Don’t Surprise Them
Have you found a bug in your solution that might impact them? Warn them.
Are you working on new features that may help them? Tell them.
Or, if the features may cause them headaches, tell them and help them prepare.
Reducing customer churn is hard when our customers are regularly surprised.
#4 Use QBRs to keep everyone focused on success
Remember tips #1 and #2. They bought your product to solve a business challenge.
Ensure you not only help them do that, but make it easy to demonstrate/measure the impact and reinforce this regularly, both through normal checkpoints as well as through quarterly business reviews.
We’ll come back and add more tips over time and we hope that these initial four give you a good start on churn prevention.