By reducing customer churn in your business, you help to create stability in it and increase your revenue. By keeping your customers longer, you have the opportunity to offer more upsells and to receive more referrals. But what causes customer churn and how can you reduce it? The most common causes of churn can be linked to needing to make improvements to your product, service, or customer service. In this article, we address some of the causes of customer churn.

Unmet Expectations

A customer may have various concerns about your product or service that may cause them to discontinue using it. For example, it may be that you overpromised or that your product or service was not what the customer expected. So, it’s important to set realistic expectations from the beginning and to have effective customer service in place to support the needs of your customers.

Product or Service Quality Issues

Difficulty with using your product or service can be a major reason for why customers leave. For example, software that is difficult to use or has bugs that are not being dealt with quickly can cause customers to become frustrated and look for alternative options. So it’s essential to keep track of, listen to, and address customer complaints. It can also be helpful to have an online board where customers can post product improvement suggestions.

Customer Fit Issues

If a company tries to sell products or services to customers who are not a good fit, just to get more customers, this can be a reason why some of them end up leaving. This results in less customer satisfaction and also impacts company reputation. For these reasons, it’s best to only focus on selling to customers who really need what you offer. Make sure that the teams of your company are all on board with this.

Lack of Product or Service Usage

Sometimes, customers buy products or services that they don’t end up using, or that they don’t use very often. In these cases, it’s important to find out why this is so. Depending on your type of business, you might use surveys or analytics tools to discover the reasons. Perhaps some of the customers need more information, such as step by step tutorials, to learn how to use all the features of what you offer. It may also be that some of the customers simply forgot to cancel your service.

Customer Support Issues

Providing excellent customer service to help ensure that customers are satisfied is essential for helping to reduce customer churn. This includes proactively addressing customer concerns and also consistently asking customers about what could be improved to increase their customer satisfaction.

A coach can help you to analyze your business and reduce customer churn. Get in touch today!