While the majority of businesses today are focused on how to generate more traffic and attract more new clients, a lot of them tend to disregard the importance of keeping the customers they have. Losing customers over time is something that can take a heavy toll on any company. That is something you have to accept as a possibility, but also learn how to prevent customer churn with timely actions. Let’s look at this topic more in-depth and teach you how to take care of this problematic situation.

The reason why customers stop using certain services at one point

To give a brief definition, customer churn is the percentage of clients who after some time stop using your services. To understand why customer churn happens, it is crucial to do a thorough analysis. A good tactic that subscription websites use is to prompt a little questionnaire when the user wants to unsubscribe. They ask the client what the reason is for canceling their subscription.

An even better approach is to make it so that the client who wants to cancel their subscription needs to reach out to your company via phone or e-mail. That way you get to have one last talk to try and find out what happened, and if there are ways to prevent it.

Engage your customers as a proactive solution to prevent customer churn

We live in an age where it is hard to grab the attention of potential clients. They are bombarded with commercials, advertisements, and millions of products and services every day. Due to that, something that was considered special or unique is now ordinary or expected. The level of service constantly goes higher. You have to become very creative to engage customers with your brand.

The best idea is to come up with a loyalty program. It offers special deals and discounts to the most loyal returning customers. Furthermore, keep an open channel with your clients, so you can inform them whenever there is a new product release, announcements regarding special deals, or an upgrade.

Checkboxes next to a smiley face, indifferent face, and a sad face, and a person placing a checkmark next to the indifferent face.
You need to engage clients and see if they are interested in your services.

Another idea is to constantly show your clients the benefits of the services they use. That is a good reminder that they have value from what you are offering. This proactive approach is an excellent way to prevent customer churn and save your company a lot of trouble.

Introduce educational programs for your clients

A good entrepreneur does not want only to sell a product and make money. That can turn into a quick profit with no real future. What you want to do is educate your clients so they understand why they are spending their money with you.

Depending on what you are selling, it is crucial to provide educational materials, like videos, webinars, or free ebooks. When it comes to the moving industry, an active blog is a fantastic way to teach clients about relocation. Offer tips on packing, and show them how to prepare for relocation by providing free advice.

Use CRM software to analyze your clients’ needs and requirements

By far, the best way to prevent customer churn is to use moving company CRM software. Its flexible features allow you to create customer profiles, track every client individually, and have a detailed analysis of customer data. When we talk about the moving industry, having returning customers is a bit difficult, especially because they don’t intend to move that often. However, if you keep a line of communication with them and show that you still care about their wellbeing even after the relocation, they will recommend your company to their friends and family.

Feedback written with white chalk on orange board.
Customer feedback is crucial information for preventing customer churn.

This way you are indirectly preventing customer churn of potential clients in the future.

A CRM software can also help determine the risk group

The benefits of CRM are not only useful when defining your targeted customers, but also figuring out what customer group is at risk of canceling their services. To achieve this, you can use CRM reporting to track unsatisfied clients. Furthermore, have the customer support feed data directly into the customer profiles on the platform, and create a notification system for all the complaints. That way your customer care agents may react immediately to prevent a potential disaster. Do not forget about the importance of historical data in forecasting future deals.

Know who your most valuable customers are

If you had a client who bought one product and that was it, that’s something you can expect often. Sometimes people are simply doing research of their own, trying to find the best service provider for their needs. However, if you had a more frequent customer who suddenly stopped using your services, that’s when you should start to worry.

As your business is progressing, make a note of who your most valuable customers are. Treat them with care and dedication, and always show interest in their satisfaction.

Ask yourself, are you targeting the right audience?

Startup companies often create a mistake of offering their services to everyone. While that might make sense, have in mind that not all people are interested in what you are selling. If you wish to prevent customer churn, you need to focus on the right audience. Otherwise, you will only be spending energy and resources on trying to keep clients that do not show any interest in what you are offering.

Person typing on laptop with illustration of different users above keyboard.
Analyze your customers and define your targeted audience.

To know who your targeted audience is, you must:

  • analyze your products and determine the age and gender that will most likely be interested in them;
  • define the price and analyze the financial capabilities of your clients;
  • if your products only target a specific group of people based on your industry, know what that group is;
  • analyze your local market and focus on satisfying the closest clients before trying to expand;

If you correctly define your target audience, you have a higher chance to prevent customer churn.

Why should you care about preventing customer churn?

If your sales are doing good, are you are constantly getting new customers, you might ask yourself why it is so important to prevent customer churn. The statistics show that customers who leave your business go to your competitors. This indirectly stops your company from growing. Furthermore, the profit of the company is significantly lower. Finally, an unsatisfied customer will not recommend your company. If you don’t prevent customer churn, you will also lose potential new clients. With that in mind, create a customer churn prevention plan and follow it through step by step!

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