Welcome to part two of this series on reducing churn rate. Let’s jump right into a few methods for keeping customer retention high and making sure no one is jumping ship!
Savvy businessmen and women know that keeping an eye on the competition is key, and nowhere is this more important than in customer acquisition and churn rate assessments. Take time out of every day, week, or month – depending on the cycle time and speed of your market – to research what your competitors have been up to. Are they doing something that you aren’t? If so, is it something that you, as a customer, would want and benefit from? Be honest here. If the answer is “yes,” think about how you could not only implement something similar, but how you could improve on it.
This is simply part of the process of continuously adding value to a business, and keeping an eye on competition helps you to gauge the rate at which you should be doing so. Rather than trying to slowly dole out new goodies to your customers, challenge yourself to give away new value as it comes about in real time. This also means that you won’t be able to rest on your laurels, and will have to constantly innovate in order to have bigger and better offers for your customers. Seem like tough work? It is – and it’s also how industry leaders get to the top.
Get Personal, Don’t Automate
Automation is one of the trickiest things to master when your business begins to grow. You want to be able to manage everything at once, but losing the personal touch you may have begun with can be detrimental to your relationship with leads and customers.
As a rule of thumb, it’s ok to automate, but don’t fake it. This means that things like post-purchase emails, etc. can be automated, and are expected to be. By the same token, don’t fake communications so that they are automated but are actually canned, pre-written, and going out to 5,000 people.
For example, let’s say you write an email for your list to announce a new offer. Don’t use silly name tagging to fake personalization. People see straight through that, and it is (rightfully) perceived as phony. People understand that they are part of a mailing list, so don’t try to convince them otherwise.
If they write to you, however, respond personally. If that becomes logistically impossible, then make it clear that a support team is the one helping to field questions and concerns. Also, keep in mind that “impossible” should mean something different to you as an entrepreneur. You should be a time management ninja, and also realize that your work day might be 10 12, or 16 hours, not eight.
Ride the Wave, Don’t Chase It
Even more important than watching the competition is to keep your finger on the pulse of your industry and the context within which it exists. Recently, Facebook noticed (and has helped champion) the bringing of rudimentary mobile internet to new countries that have never had such services. The company launched a stripped-down, Facebook Lite app to better accommodate these low-bandwidth markets. As soon as new mobile plans hit these countries, Facebook will be one of the first apps available.
Be the Facebook of your industry. Sound like big shoes to fill? They are! But the point is that you should be looking to ride along with new trends as they crest, and leave everyone else to chase after you. That is, of course, the mark of an industry leader after all, isn’t it?
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