Lost Customers=Lost Revenue.
A brand’s worst nightmare, isn’t it?
For many brands, the easy remedy to recover this loss is replacing old customers with new ones. But the value that you will lose along with customer churn is something to think about.
To combat this, you need a comprehensive and robust plan of action in place. In order to curate the perfect retention strategy, your main focus should be on calculating your rate of churn. And to witness a dip in the churn rate, you must offer better CX.
But how can you leverage communities to reduce customer churn and retain your customers? Let’s dive deeper into the concept of churn to find out!
Customer Churn: Why Worry About it?
When customers stop giving you business, that’s when customer churn happens. The reason behind this is that the cost of customer acquisition is higher than that of customer retention.
It is easier to sell your products/services to your old customers in comparison to the new customers. But acquiring new customers is a challenge in itself. You should be able to deliver superlative support to your customers in order to retain them and give them an incentive.
3 Ways to Combat Churn With Online Communities
An effective way for improving your brand’s customer support delivery is through your online community. Your online community is the perfect medium to engage with your customers, provide them with the necessary information, and deliver exemplary support.
Even a slight miss in delivering the above can make you lose your customers. Thus, providing prompt support delivery should top your to-do list. Let’s look at the three most impactful ways to reduce customer churn through communities and improve CX.
1. Consumable Content That Engages the Reader: The average attention span of human beings is of a mere 8 seconds![i] You’d be a winner if you’re able to catch their attention and keep them hooked to the content that you post in your community. Thus, creating content that’s bite-sized, easy to remember, and consumable is a practice that you must follow. Today’s consumers are well-informed and are looking for information that’s crisp and adds value. Hence, feed your members with the information that they’re looking for. This will result in member retention and reduced churn.
2. Critical Analysis of Customer Data for Retention: Your community is a goldmine of valuable customer information and data. So, leverage this information to ascertain the reason for churn. Using this information, you can also identify those customer segments that are more likely to leave. Once you’ve identified the gray areas, you can devise strategies to reduce churn and retain more customers.
3. Customer’s Contribution Incentivization for Acquisition and Engagement: The Pareto principle states that only 20% of your customers are responsible for 80% of the revenue that you generate. This is a testament to the fact that those 20% of customers are more likely to be the ones who bring maximum engagement in the community.
For your customers to stay hooked to your community, it is essential to keep them intrigued. Only when they see true value for investment, will they come back for more. To retain them, you can implement gamification elements in the community and incentivize their contribution. You can introduce avatars or superuser programs in your community for more participation & engagement. You can also offer incentives such as points redemption and more.
Your customers are the driving force that defines your success. You’d definitely not want to lose them. So, listen to what your customers want. A stellar customer experience is the key to reducing customer churn and witnessing improved community engagement.
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