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5 Effective Strategies to Avoid High Customer Turnover



5 Effective Strategies to Avoid High Customer Turnover

In business, the mission is simple: acquire more customers and make more sales.

Acquiring the first batch of customers is usually an exciting moment for any business owner. However, that’s only half the job. The other half is making them stay.

If any of them leave, you’ll be left wondering what you can do to lower the high customer turnover rate. After all, it costs about five times more to gain a new customer than to keep an existing one.

Don’t let a high churn rate keep you awake at night. In this guide, you’ll find a handful of practical tips you can use to address the issue.

Let’s get right into it.

1. Personalize the Onboarding Experience

There’s a direct relationship between a customer’s onboarding experience and their satisfaction level. Customers who’re satisfied with the onboarding process are more likely to stay around and try out your products and services for longer.

An effective way to offer the best onboarding experience is to personalize it. Customers love when companies put extra effort into offering them services that suit their preferences or needs.

For example, something as simple as addressing a new customer by their name in a welcome email goes a long way to personalizing their onboarding experience. Or if a customer has stated that their preferred way to be contacted is via SMS, use that method. It shows your company cares about the customer’s preferences.

As a business, you should be continually finding new ways to personalize this experience. Remember that customer preferences are always changing, and so should your onboarding process.

2. Poor Pricing of Your Goods/Services

You’re at liberty to price your products/services as you wish. However, you can’t just slap any price tag on your products. You must consider your competitors’ pricing strategy, as well as your customer’s purchasing power.

If you don’t factor in these things, your business will struggle with customer retention. The average customer isn’t going to pay just any price simply because your product is the best in the market. They want value for money, which means they’ll consider what similar products in the market are going for.

When launching a new product, research the market and establish how much your target consumers are willing to pay for your offerings. This is especially vital if you’re entering a niche market where there isn’t a competitor.

Offering attractive discounts (price cuts) to your customers can also help keep the churn rate low. Sometimes a customer will take their money elsewhere because the deal is better. Offering them lower prices can be all it takes to make them stay put.

3. Bad Customer Service

Bad customer service is bad for customer retention. A recent survey concluded that about 60 percent of your customers will switch to a competitor after one instance of bad customer service.

Now, you wonder, what’s bad customer service?

A rude or unbothered customer rep attending to a customer may be the first thing that flings to mind, but there are several ways a customer can be dissatisfied with your service.

Think of when a customer wants to contact your business and they can’t easily find the contact information on your website. Or if your customer service number doesn’t go through on the first attempt. Or when your business takes several days to respond to an email.

All these are subtle things that amount to bad customer service and the modern consumer won’t be so forgiving.

As you turn up your customer acquisition efforts, ramp up customer service as well. Hire more customer service reps as needed and ensure they’re properly trained.

Provide multiple channels for customers to contact your business, as not all of them prefer the old method of calling in. Prompt responses to customer inquiries are the key to a customer’s purse!

4. Act on Customer Feedback

It’s hardly possible to fully satisfy all your customers. Thankfully, some dissatisfaction here and there won’t shake their loyalty. They’ll, however, give you feedback on what you can do to serve them better.

Act on that feedback, or else risk losing the customers.

Taking too long to make changes requested by customers, or not making any changes at all, shows customers that you don’t care about their needs.

This also means that you ought to allow your customers to give you regular feedback. Run monthly or quarterly surveys by email, for example.

If you don’t, count on them to go to third-party sites like Facebook, Yelp, and Google to leave their reviews. You have no control over these reviews, and if they’re negative, your brand’s reputation will take a hit.

5. Utilize Customer Relationship Management Technology

Technology is revolutionizing various aspects of running a business, including service delivery. Infusing the right technology into your customer operations will open up a new world of possibilities and make customer retention easier.

There are different types of CRM software, but they all have one core goal: customer contact management. You’ll have all the data from your sales leads and customers, which you can use to refine your customer service strategies.

For example, if a certain customer goes for longer than usual to make a purchase, your CRM system will tell you. With this information, you can decide to reach out to the client with an offer that could incentivize them to make a purchase. That’s how you retain a customer!

If you’re ready to find the best CRM software for the needs of your small business, start your research at

Keep Customer Turnover Low

High customer churn rates are a nightmare for any business owner. It’s particularly worse when you keep losing customers despite your best efforts to make them stay.

However, as long as your product has good market demand, it’s not impossible to keep customer turnover low. For the most part, you just need to go back to the basics and listen to the customer.

What do they want you to improve? Do it and you’ll see a positive outcome.

Go to the business section of our blog and find more business tips!


Questions to Ask About Credit Card Rewards



Questions to Ask About Credit Card Rewards

In today’s digital age, credit cards are more than just a tool to make purchases. They’ve evolved into rewards-generating machines, promising luxurious trips, cashback, and other enticing perks. But as with most things in life, there’s no such thing as a free lunch, even if you’re earning points on it. Before you start swiping your card with glee, it’s crucial to understand the nitty-gritty of the rewards game. When wielded incorrectly, credit card debts can spiral out of control, often leading individuals to consider loans to pay off credit cards So, how can you take advantage of credit card rewards without falling into the trap of debt? It’s all about strategy and asking the right questions.

Understanding the Basics of Credit Card Rewards

1. How do rewards actually work? Before you dive deep, take a moment to understand the foundation of rewards. Credit card companies usually offer points, miles, or cash back for every dollar you spend. Once you accumulate enough of these, you can redeem them for a variety of rewards such as airfare, hotel stays, gift cards, or even statement credits.

2. What are the annual fees and other hidden costs? It’s essential to weigh the rewards against the potential costs. Some cards have hefty annual fees, and while the rewards might seem attractive, you’ll need to earn enough to offset these costs and still gain value.

Strategies to Optimize Rewards Without Incurring Debt

3. Are you paying your balance in full every month? One of the quickest ways rewards can become costly is by accumulating interest. Ensure you pay off your balance in full each month to truly benefit from rewards. If you’re only making the minimum payment, interest can quickly negate any rewards you’ve earned.

4. Are there any bonus categories or spending caps? Some cards offer higher rewards for specific categories, like dining or travel. Being aware of these can help you optimize your spending. However, there might also be caps after which the rewards rate decreases.

5. Can rewards expire or be forfeited? It’s a common misconception that rewards last forever. Some credit card companies have expiration dates on points or miles. Ensure you’re aware of any such limitations and use your rewards before they vanish.

Utilizing Rewards for Maximum Benefit

6. Are there any redemption bonuses or restrictions? Some cards offer bonuses when you redeem your rewards for specific things, like travel through their portal. On the flip side, there might be blackout dates or restrictions on when and how you can use your rewards.

7. How flexible are the rewards? While some cards offer fixed rewards like airline miles for a particular carrier, others provide more versatile points that can be transferred to various partners or used for multiple redemption options.

8. Are there opportunities for bonus points? Often, credit card companies will have promotions or partnerships where you can earn additional points for shopping at particular stores or during specific periods. Keeping an eye out for these can boost your rewards significantly.

Closing Thoughts

Credit card rewards can indeed offer fantastic benefits, from dream vacations to saving money on everyday expenses. However, it’s a balance of strategy and caution. Remember, credit cards are primarily a financial tool. While rewards are a delightful bonus, they should never be the sole reason for making a purchase. By asking the right questions and staying informed, you can make credit card rewards work for you, and not the other way around.

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