It has happened to your business before: People buy your products. Your customers have even built affinity for your brand, and they are loyal. But, as time goes by, some of your customers stop using your products. Thus, the sales you generate are affected. Such is the concept of customer attrition or customer turnover. In the less formal parlance, this is known as churn.
Customer churn is one of the problems that many businesspeople, especially marketers, face. It happens due to a lot of reasons, some of which can be easily pinpointed when you pay attention. Many deem that addressing it can be difficult, but it only gets difficult when you do not know the central reasons it happens. With that, it is safe to say that knowing why it happens is equal to solving half the problem. As such, you need to invest time and effort to look into your procedures and the way customers receive your efforts.
If you want to know the main reasons customer churn happen, here are some of the pointers worth taking note of:
Poor Quality of Product or Service
People go to businesses to use their products and services. They use these to aid them in their everyday living or to help them solve some of their problems. When these products are already ineffective and do not help them anymore, customers are likely to leave your brand. This is why you should always invest in making your products better. Make sure that you have a reliable product development team that works well with your marketing teams.
Speaking of marketing, its role is all about making your brand relevant to the lives of your customers. You are supposed to make sure that the brand is viewed as something that people can trust and consult with. You have to show the values that your customers can relate to. Ineffective marketing can turn customers off, and that may mean churn eventually. People leave brands when they no longer identify with ideals and values. You also have to invest in reliable ways, such as digital and direct marketing in London, to boost your branding efforts.
In the marketing mix, price is one of the things that attract customers. Most customers are drawn to affordable prices. When there is a hike in your products’ prices, there is a chance that your customers will try other brands. When price increases cannot be avoided, you have to justify the act. Add new features to the products for example.
Poor Customer Service
Customer service is the tangible or visible representation of your brand mission and vision. The way you treat your customers can affect customer retention. When your customer service is delayed and inefficient, expect that your clients will try new brands, preferably those with strong customer service.
Customer churn is a challenge that you need to address if you want to maintain brand retention and recognition. It is one of the things that you may want to understand better if you want to improve your business’s customer service and marketing efforts. You can overcome this challenge with the right strategy and the right partner that will help you.