Customer churn is the most important aspect to watch out for. Each business deals with it differently; some immediately start acquisition campaigns to acquire new users and replace the loss. Others will analyze the situation/data, why users are leaving the application, and prevent it by implementing user retention strategies. Before explaining strategies to reduce customer churn and improve retention, let’s understand what is “ customer churn.”
What is Customer Churn?
Customer churn refers to the percentage of customers who unsubscribe or uninstall your product or service during a set period of time. You can get the exact numbers by dividing the number of customers you lost in a quarter by the number of customers you started that quarter with.
Addressing Customer Churn and Why it’s Crucial
Acquiring a new user costs five times more than retaining a customer. Nurturing new users to the same level will take time. It’s easier to get revenue from an existing customer than getting a new user.
Although it’s evident that retaining customers is more important because customers will remain customers as long as they see the value.
Here are the six effective strategies to reduce churn and improve retention.
1. Find out why customers are leaving
The first thing you need to do is find out why the users are dissatisfied. Analyze the data, monitor the session time, feature usage, and screen views to understand where the users are dropping off. You can do this by effectively using some robust app engagement and analytics tools available in the market.
Communicating with the customers will do wonders in analyzing churn. Leverage omnichannel engagement to take valuable feedback, understand their pain points, and make changes to prevent it in the future.
2. Engage with your users effectively
Actively engaging with your users will also help bring back the users, giving them a reason to come back to the app on a day-to-day basis by making your products, services, offers, etc., a part of their daily workflow.
Use all the channels effectively to engage your customer throughout the customer lifecycle with the right content at the right time.
3. Nurture your customers
Not having enough knowledge about your service and offerings will also make users leave your business. Effective user onboarding techniques play a crucial role in providing first-hand knowledge about the product/service. Leverage video tutorials, free email courses, webinars, and product demos to make your users feel comfortable and informed.
4. Improve your customer experience
To create a stellar user experience, consider the entire user journey, understand the end-to-end experiences with customers, and how interactions happen at each stage. This will give you enough insight to fine-tune your product to deliver an excellent user experience.
5. Loyalty programs
Customer loyalty programs are shown to have a significant impact on user retention. The loyal users are more likely to repurchase, try new offerings, and show interest in referring other users.
Loyalty programs will retain users for a long time, and provides higher LTV, and require less work to convert.
6. Define your most valuable customers
It is vital to create segments for your most valuable users based on the parameters you apply. Once you have your potential segments based on profitability, proactively reach out to ensure that these customers are satisfied. You can do this with either an Engagement tool or customer success teams.
Some companies run “surprise and delight” campaigns to offer incentives, discounts, perks, or additional services to create goodwill.
Following the above mentioned best practices to reduce customer churn and improve retention, one crucial aspect to keep in mind while following these methods is to use the right engagement tool to execute the above vision.
We would like to take this opportunity to introduce you to one of the most potent omnichannel engagement and analytics tools called Upshot.ai. This revolutionary customer engagement platform is used by Fortune 1000 companies such as Amway, ITC, CBS, UHG, and Tenet healthcare to increase user engagement, retention, and monetization dramatically.
Upshot.ai uses advanced analytics and segmentation engines to create tailored target segments and acts as a potential omnichannel engagement tool. Leveraging upshot.ai, you can create customized feedback campaigns including star ratings, NPS and you can also use Reward programs.
Create user funnels with customizable steps to monitor how many users are filtering through each step closely. Create segments for the users who did not move to the next step in the funnel, and send nudges to convert.
Upshot.ai dashboard enables you with users’ activity in an hour/day/week format so that you can identify the right time to nudge the users. Upshot action reports will give you the campaign performance results and many more insights for your next campaigns.
It is one of the most comprehensive mobile marketing platforms today used by product owners, marketers, and developers. Gather deep, actionable user insights and predictive intelligence to optimize their app, send personalized marketing messages, and add out-of-the-box features. Get in touch today to begin transforming your business with Upshot.ai.