Your Best Customer Are the Ones You Keep — Here are Tips on How to Do Just That
Churn is your loss of customers and resources; left unchecked, it can have severe impacts on your bottom line. What’s more, when you experience churn, it means you are losing customers you already worked hard to get. According to some estimates, acquiring a new customer can cost five to even ten times more than retaining an existing one.
Easy to use tools like those from Overdue help you learn more about your churn and enact targeted efforts to reduce it. Much of this effort is focused on cancellation recovery, which can result in degraded customer experiences and less money in your pocket.
Understanding Why Customers Cancel
There are a bevy of reasons why a customer might cancel on you. Here are just some:
- Not seeing ROI on their investment after purchase
- Slow delivery or implementation
- Poor support
- Inability to realize value proposition
- Lack of product features
- Poor product
- Not the right fit
- Bad experiences
Any of these issues can cause customers to unsubscribe from your service regardless of if that service is a magazine subscription or a SaaS subscription.
Reduce Subscription Cancellations With These Effective Solutions
Subscription cancellations are indeed a fact of business, but that does not mean there is nothing you can do to stop them. Tools from Overdue let you engage with customers at the moment they are contemplating canceling their subscription. Here are some effective solutions:
- Offer a discount: Price is often a top reason why customers cancel. Overdue lets you connect with customers at the moment they hit the unsubscribe link. Offer them a discount as opposed to letting them simply slip away and watch your unsubscriptions evaporate.
- Reward customer loyalty: When customers are happy with what they get from you, unsubscriptions decrease. This is a strong indicator of satisfaction, but it needs encouragement to continue. Offering discounts, extended service, or more to loyal customers can nurture client loyalty and encourage them to share their experiences with family and friends.
- Enable subscription changes: For customers who simply found that they ordered too much or not enough, letting them change their subscription plan may be all it takes to keep them on board. If customers can’t complete these actions easily, it may appear to be easier simply to cancel with you and choose another service. Overdue makes it easy to modify subscription plans with our popup choices that can link directly to a subscription services page.
- Ask for an explanation: Achieving zero churn is nearly impossible. Understanding why, though, may provide actionable intelligence that you can use to prevent cancellations among other customers. Overdue makes finding out why a snap, with simple choice menus and fully customizable language.
- Teach customers how to use your product: Many customers cancel subscriptions because they don’t understand how to use what they bought. Maybe your solution is sophisticated, maybe you are constantly launching new features, or maybe you have customers who simply aren’t engaged. Teaching customers how to use your product can keep them on board and add a level of personalization that increases engagement. You could direct them to blogs, a FAQ page, or even a customer support line.
Don’t let customers cancel and lose more revenue and selling opportunities. Engage with Overdue today and keep those hard-won customers.