Your customer retention rate depends on a lot of factors and can speak a lot about the current health of your business. If your customer health score is not good enough, there’s a high risk of your customer churn out. Doing the right thing at the right time can help retain customers. Let’s look at some of the ways you can retain customers who are on verge of cancelling:
Analyze what you know
Ask yourself these questions:
- Do you know the reason why your customer is canceling?
- Is this a surprise for you or do you already know the issue?
- Can the issue be solved?
You know the issue and the reason why they are churning out, look deeper—why weren’t you able to get in front of the issue earlier, what attempts to solve have you already made, and consider what you haven’t already tried.
Talk to the customers who are leaving
Churn is inevitable, it will happen. But you need to analyze the real reason for the churn. This helps you build up solutions against it. Use your churned customers’ feedback to avoid mistakes if any.
If a customer decides he doesn’t want to do business with you anymore, don’t let that customer walk out the door before you know why. The feedback here is very valuable for you.
Move on when the time comes
If you know you can’t solve it, or if the customer isn’t worth saving, you should probably move on. Ask yourself this question, Is this customer worth all the effort you are taking to save them?
Maybe sometimes it’s not enough to just have a great product that solves a real problem. Or your customers have low adoption on their side and cannot use your product to the fullest.
Gain an Understanding of What Customers Want
Collect the voice of the customers at risk. You can also do this for loyal customers, high-value customers, and former customers. This will help you be aware of many important things, including the reason your customer bought your product, why they stuck around, and what made them cancel.
Build Workflows Around Your Customer Churn Red Flags
Once your campaigns are set up, you’ll then want to set up a workflow to determine which triggers to use based on the churn risk factors you’ve identified.
For SaaS providers, you might look for customers that haven’t logged into their account for X number of days, didn’t complete the onboarding, or have stopped using your product.
