Reduce Churn by Keeping in Touch With Your Customers

Reduce Churn by Keeping in Touch With Your Customers

 


Churn rate is one of the best indicators of a business’s health. Also called attrition and cancellation rate, it is the percentage of clients who have discontinued and canceled a product within a time period.

In a perfect world, your company would have zero percent churn–but customers canceling is a fact of doing business. However, there are ways to reduce this.
In this post, we’ll look at some ways to retain customers better and reduce customer churn overall. These are pointers you can use to reevaluate your overall business strategy and review your customer playbook for sales, support, and marketing teams.
Be proactive

What Are the Important Customer Success Metrics

What to Measure

Ask anyone in sales or customer support regarding important customer success metrics, and almost always, churn is mentioned. Churn is short for ‘churn rate’ and refers to the percentage rate of customer loss or customer defection. And while this is an indicative customer metrics that we should all monitor, it is incomplete.

Guy Nirpaz, co-founder and CEO of Totango, says: “Churn is very important, but this is the outcome…. Churn, renewal, upsell, these are all the outcomes. In order to impact the outcome, [you need] to look at the leading indicators.”

Net Promoter Score Defined

Net Promoter Score, defined.

Patrick Hogan

Patrick is a Co-Founder & Chief Executive Officer of Tenfold.

Net Promoter Score

When measuring customer satisfaction with a service, Boston-based consulting firm Bain and Company identified three major groups of people based on the scores they give to one particular question: are they, the customers, going to recommend the particular service they are using to friends and family?

Using a normal scale of 0 to 10 as the answer, a customer can fall into one of the following three designations:

Lean is not for us, as we really want to provide quality to our clients

Recently, I needed to undergo major surgery. Most staff will ask what you do professionally (probably to calm your nerves). In a haze of sedation and pain, I mostly answered “…something with Lean and Six Sigma”. It was good to hear many seemed to know what I was stammering about. A response I am sure I heard a few times was along the lines of….”Lean is not for us, we are about quality for clients”.

Now let me be clear, the care I received was exemplary, I can only bow my head in deep respect for all the staff in the hospital. The way they care about people, strengthens my faith in mankind.

The Importance of Listening Skills for Managers

The Importance of Listening Skills for Managers, by Jackie Edwards

Listening. Today, around 40% of employees do not feel valued or appreciated, and around 70% would be willing to accept an offer for another job or are actively looking. This issue stems from a difficulty in communication within the workplace which, as a manager, it is important to address.

While it is widely recognized that managers must be excellent leaders and problem solvers, a very important and often underlooked managing skill is also listening. This skill can make you a better and more effective manager; employees will strive hard to do their best for a manager who actively listens to them, leading to a more productive and motivated team. Here are our tips to help managers improve their listening skills.

Objectives and Agendas

Whose Objectives are You Pursuing, by Walter McIntyre

Every person and every organization has objectives and a purpose.  I am not speaking of the ones individuals profess or those an organization posts on their lobby wall.  It is the ones you observe in action that count.  These objectives, which are always related to an agenda, are not that hard to see and hear if you are paying attention.

I am fortunate to have been involved in leading a business turn around twice in my career.  In both cases individual agendas and objectives were subverting the business’s success.   In both cases, changing the focus of specific individuals, or removing the individuals from the business, became the turning point for business success.

Principles for Life

Principles for Life

by Walter McIntyre

I have personal operating principles that help me have a happy and fulfilled life.  I guess you would say that this helps me lead a principle centered life.  These principles, when followed, even when it is not convenient, help me move through my life with happiness and peace of mind.  I am not advocating what is morally right or wrong, only that you need to understand “your” right and wrong to have a stable map for your life to follow.

Project Management Problem Solving

Project Management Problem Solving by Walter McIntyre

I hear the following a lot.  “He (or she) is a good problem solver.” This is a great quality to have, but it is less than half the needed skill.  It is better to be known for preventing problems.  From both a time and cost prospective, a problem prevented is best, because solving a problem typically adds more time and money to a project, than a solid plan to avoid the problem in the first place.

Culture of Process Improvement

Cultural Aspects of Six Sigma Process Improvement by Walter McIntyre

Whatever the process improvement methodology used, when properly applied, it produces a change in a business’s culture. Outlined below are some behavioral changes necessary to sustain a customer focused process improvement effort.

View the business as an organization of processes:
• If you view the business as an organization of processes, then managing the business becomes managing processes.
• Processes are interrelated and, as a result, they interact with each other. Changing one affects the others.
• If the appropriate processes are in place, managing those processes is managing people. Not the other way around.

Listening and Speaking Skills

Listening and Speaking Skills by Walter McIntyre

A process improvement team is from the beginning a team of investigators. They investigate process performance by looking for improvement opportunities and the root causes of problems. All of us have seen detective programs on TV where a sleuth investigates a crime. They ask questions, listen, set up stakeouts, and eventually discover what really happened. Process improvement teams follow the same strategy. They ask questions, listen, and monitor processes. All of this to discover the root causes of process problems. An improvement team will use all four basic communication skills: reading, writing, listening, and speaking. These skills become the lubrication that allows a diverse group of team members to work through an improvement project successfully.