How to Reduce Customer Churn and Delight Your Customers

28 March 2017

Many companies focus much of their efforts on qualifying their leads and winning new business. This is a good thing. Though focusing too much on new business can lead to the vast majority of your marketing budget and resources being spent only on acquiring new customers, neglecting your existing customer base. This isn’t such a good thing. But what exactly is the benefit of trying to reduce customer churn?

According to research by Bain & Company, it costs five times more to acquire new customers than to retain existing customers. The probability of selling to an existing customer is far more likely than selling to a new prospect. A poll by Harris Interactive also showed 72% of customers who had a memorable product purchase took action to communicate about it positively to others.

Not only does it cost much less to sell to existing customers (and the likelihood of this happening is much higher than selling to an anonymous website visitor), delighted customers could effectively start doing your marketing and PR for you. Reducing your customer churn and making customers happy is quite obviously a win-win situation all round!

Make your customers as happy as this cat.

A little effort can go a long way here and using a CRM system to drive these communications is definitely the right way to do it. Here are a few ideas to reduce churn:

Understand your customers

If you’re not already using buyer personas, you’ll definitely need to start. The buyer revolution means that buyers follow a self-directed path to purchase, so you need to know how they found you, why they decided to become a customer, how you are currently helping them solve their problems and how you can continue doing so.

Where do they spend their time online? What keeps them coming back to you, and how easy would it be to lose them to your competitors? Understanding their problems and how you are helping them achieve their goals will help you optimise your strategy and reduce churn rates. Use your current customer base to help fuel your research into your ideal buyer personas.

(Click here to see how buyer personas help in acquiring new customers in our free Guide to Lead Qualification)


Understand which services/products they purchase and why

What are your customers currently buying from you and why are they choosing to buy these products from you as opposed to your competition? Does your customer service set you apart or are you selling a product that sells itself? Knowing your strengths and weaknesses can help you improve your strategy so that you can continue scoring brownie points where they count the most.

Communicate only to add value

News flash – your customers don’t want to hear from you unless they benefit from the interaction. Don’t be like that boring Facebook friend from high school who updates every time they go to the gym. Take a solemn vow to only communicate with clients if you are adding value. Things like coupons, discounts, invitations to special events and promotions are all things your clients want to hear about.

Add value with every interaction

Your communication efforts and interactions need to add value every step of the way. According to Epsilon, 54% of emails sent by businesses are marketing messages. Nobody likes spam and you want to avoid becoming just one more email in their already crowded inbox.

Studies show 74% of consumers prefer to receive communication via email. Personalise your efforts so you aren’t sending unrelated sales newsletters or a blog post featuring products the contact would never buy. Make sure your customer knows when he or she receives information from you, it’s going to be visually appealing, concise, and that they’ll get something out of the interaction.

These actions can lead to repeat purchases, which in turn can reduce your customer churn. If you need help building a strategy that reduces churn or setting up a marketing plan, Storm ID can help. Learn more about our digital strategy and consulting services.

To find out more ways to qualify leads, download our guide: 5 Marketing Hacks to Qualify Leads Effectively.

5 Marketing Hacks Guide




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