“We all want to do business with other humans. We want to know there’s a living, breathing person behind the communications. And we want reassurance that those humans on the other side understand and want to help us.”
What is your business doing during the COVID 19 crisis currently?
‘What can we do?’ is the common reply to the above question so you should know why it’s been asked in the first place.
Jump Directly to
The COVID 19 crisis has taken the world, actually the entire globe under a serious threat. Almost half of the countries are under a curfew or lockdown and offices have been either shut for days or are asked to work from home.
Now you need to understand that during this time, your client count is going to drop for obvious reasons such as not confident to invest in such a time or will come back later when everything is fine or the fear of loss and so much more.
All of these negatives are driving your brand to the main point, ‘Customer churn’. This is an issue which if not handled well can bring down your brand way below the loss line.
Interesting Read : Automate Sales Outreach: B2B Sales Hacks That Will Save You So Much Time!
Do you now see the problem? The reason for the question?
At a time like this where everyone is roaring about ‘We are going to have a loss in our business’ or ‘What do we do to save our business’, why don’t you shift your focus to the latter.
‘What do we do to save our business?’
The straight answer would be to reduce ‘Customer churn.’
Let’s get to the bottom of the topic.
When a customer stops to do business with you and the number of that list is high, that is when you know you are experiencing the churn category.
For instance, say if you are a loyal client to a brand and that brand hasn’t been doing much to retain your interest, your next action would be to walk away, wouldn’t it? Your action will cause a huge impact on the brand.
That is because for a brand it is much cheaper to retain its customers than to acquire new ones because when a brand finds new clients, it takes a lot of effort and strategies to tap their interest. The stats prove that it takes ‘’16 times more to bring a new customer up to the same level as an existing customer.’’
Customer churn can happen even right now while you read this article which is why you need to understand that eliminating this issue can help retain your loyal customers. This is important because at a time like this losing even one client can cost you a huge loss.
But before we can get into the solution, let’s first understand why reducing customer churn is important for your business in such a crisis time.
“The voice of the customer has never been louder. Thanks to social media and the changing dynamics of communication, every one of your customers now has the power to bring you more business—or drive it away.”
This isn’t just one reason for the problem there is much reason why churn takes place such as:
1 . Not taking care of your existing customers
2. Poor communication with them
3. Not providing the value you did when they invested in your from day 1
4 . Lower delivery standards
The most common issue is that there is always a lack in the service once a client becomes a potential sales lead. Many businesses believe that when clients are in, their work is done but that isn’t in the case.
For instance, now we are going through a period of crisis because of COVID 19. Your client will want to know what your business is doing for it, how are you going to continue serving them?
This is a great opportunity for you to reduce your client churn rates as little as possible through multiple actions such as maybe upgrading their services, constantly communicating with them, making sure that your services are working fine with them and so much more.
In times like this, the main focus of your brand should be to help your client because finding new clients at this moment is difficult and slow. When you see it in this way, suddenly you understand why reducing client churn rates becomes an important task for you to accomplish right?
Interesting Read : The Ultimate Guide to Sales Prospecting in 2020
There are easy ways for you to reduce client churn rates. Below are the effective measures you can conduct such as:
1 . When you know that such a situation can trigger his issue, keep a track of your client count
2. Identify and understand why would they leave you and work on coming up with a solution to pull them back
3. Make every process or query in your solution easy to understand
4. Work on your communication, the consistent the better
5. Work to provide the best services for your customer so that they don’t have to check your competitors
6. Offer dedicated team members to manage your clients as and when they require assistance
7. Keep offering free things, discounts offers and upgrades for your brand
8. Offer them additional assistance, don’t limit yourself to just selling. Empathize with them, comfort them if they are unsure about your brand
The list can go on. Right now it seems overwhelming to suddenly make a change. But when you have such a high risk in front of you, you become affirmative to take the action.
Why don’t you ease yourself by reading about what your peers have done to reduce client churn?
Hubspot knew that reducing churn rates is important which is why they decided to focus on the factors that could help conduct the action, Customer happiness index. At Hubspot, the main goal here wasn’t to just make the client subscribed to a package. They knew that if a client is subscribed to their services for 6 months, there are still high chances of them leaving and seeing something else.
Hubspot wanted their clients to not just invest in their services for the benefits they offer, they also wanted their clients to be happy with what they were offering and go ahead and renew because of that. Hubspot realized that they wouldn’t be able to measure churn rates if a client is in the subscription period hence they knew they had to do something to calculate or rather reduce the churn.
Hubspot implemented three things to reduce churn:
1. They focused on their client activities, how much do they blog, how many times do they use Hubspot to check out their lead count and much more
2. They started to work closely with clients for the first few months to help them get started with the inbound marketing solution they offer. They would educate their clients so that they don’t find it difficult to start working on their goals
3. Lastly, Hubspot would send monthly reports to give clients a better understanding of their performance and how they can calculate their customer happiness index for their audience
The results of such an action:
1 . Increase in the lead count by two digits
2 . 33% of unhappy customers were retained
Tips to reduce churn rates from the expert:
1 . Focus on engagement, usage metrics
2. Observe closely the metrics you apply to identify how happy a client is with your solution
3. Keep altering and changing your processes so that it is tuned to cater to your clients better
Intercom believes that the best way to reduce churn is to hit the audience at the right time. Intercom understands that the churn rates are not detected when a client cancels their service with a brand, it happens when the engagements and usage of their actions towards your services reduce.
When you notice that you have a team that caters to multiple clients and suddenly the actions of the client slowly become to fall out such as lesser communication, that is when you need to start working on the churn. You can still reduce the churn rates of that once a week client who reaches out to you, all you need to do is pay attention to what their actions are.
Intercom conducted the following steps to reduce churn:
1 . Instead of sending automated emails all the time, keep a close lookout of those clients whose actions have reduced recently
Tips to reduce churn rates from the expert:
1. When sending automated emails to your clients who have left your services after a free trial or who are communicating less with you after associating with you for long, make sure it’s different. Understand the situation of the clients and then frame an email accordingly
2. Identify the low actions of your clients and understand when can they break off with your services
3. Attract your clients with offers or features, something which they consider valuable
4. Trust your solution, don’t go overboard with the spamming activities
Mention understood that another key way of reducing churn which was increasing the communication with the clients. They believed that while free trial users were important, another set of clients which are the paid ones were important as well. Mention used to send out feature activation to its free users as not only would it drive more conversions it also helped in reducing churn rates.
Mention used Intercom for customer support. They divided the users into membership types and started to cater to those users who added immense value to their brand. They worked on solving their requests with priority.
Mention conducted the following steps to reduce churn:
1 . In every few hours, support batches were being managed which gave room for more work to be conducted
2. Took client data to improve and enhance the support tools and also their product
3. Encourage more feature activation for free trial users
4. Sent out multiple ‘Successful’ case studies regarding their solution
5. Created a ‘Use case’ Master class to help users understand about Mention, how it functions and its features
1 . 22% reduction in churn rate
Tips to reduce the churn rate from the expert:
1 . Extend your campaigns more so that you can send out valuable information to your clients about your brand
2. Don’t keep explaining how your brand works, instead showcase it with guides, blogs, testimonials, success stories and more
Groove had an increase of churn rate which was 4.5% and that’s when they realized that if this continues to function their brand could be heading downhill. They started to identify the problem. They realized that the best way to work on reducing chur was to understand why their clients were going away from them.
Through research, they understood that for users who continued to function with them after 30 days, their first sessions lasted for 3 minutes and more while the other users who had quit were just 35 seconds. Also, they understood that the tasks that were being conducted such as creating a simple widget, for some users it took longer to conduct the action.
Groove implemented the following tactics to reduce churn:
1 . Engaged with those users who had a first session time of 2 minutes by sending them emails
2. The emails were sent to those users whose login actions were fewer in the days
3. Catering to clients who had an issue or difficulty with Groove’s solution by sending them emails to help them out
1 . 26% increase in response rate for catering to the users who had a session of 2 minutes
2. 40% of users continued their service with Groove even after 30 days
3. 15% response rate was increased with the emails being sent to those users whose login activities were less
4. 10% increase in response rate for those emails which were sent out to users who needed assistance
Tips to reduce the churn rate from the expert:
1 . Highlight the reasons why your clients would leave or what is making them leave
2. Keep a close eye on those users who are finding it difficult to use your service or features
3. Rewards your loyal customers always
Lastly, another reason why churning takes place is that there is a lack of human touch. When there is a lack of human connection, why would a user continue to function with your brand? Zendesk wanted to be more than just a brand for its users. They didn’t want to just engage with them because of renewals, they knew that if they wanted to reduce churn they would have to do a lot more human touch activities
Zendesk climbed the extra mile. They worked on Customer Account Management which was sent to the Zendesk clients with a 12-month program for all the actions such as follow-ups, emails, and phones. The program helped to get more personal engagement between the account managers and the clients. If the interactions are less, it would be taken care of before it can reach a disaster stage.
Tips to reduce the churn rate from the expert:
1 . Engage with clients more. Don’t contact them when you need them to upgrade or subscribe. Communicate more with them such as by taking feedbacks or helping them solve their queries
2. Create a plan where your clients can use a few of the content such as blogs or guides to understand how to function better using your solution
3. Identify when it is most likely your clients might churn and reach out to them quickly. Indulge with them with more empathy and humane
4. If your using softwares ensure that it is proved to be helpful to your clients
You are aware of what your peers are doing and now it is time that you do the same. Multiple ways can help you to reduce churn but for our readers, we don’t want to give just anything. Hence we have curated only the best practices that will work to reduce the churn for your business faster and more efficiently.
‘’ 67% of customer churn can be prevented if a customer’s issue was resolved at first engagement.’’ First impressions matter and they matter the most. If your brand is going to leave your clients unsure in the first go, don’t expect your results to be positive. The number one reason to ensure here is that you are able to create a scenario where your clients are compelled to explore your solution.
For instance, when you convert your clients to a sales lead, the first thing you would do is welcome them to your family. You would send an email stating about your brand, benefits of them investing in it, how they can reach out to you and how your blogs, ebooks, and other relevant content can guide them towards your process.
Witness how well the email is being drafted. The client has nothing to worry about because everything listed in the email speaks for itself. For instance, sharing a link, in the end, to reach out to the brand quicker for any queries, sharing guides to help the client to start its website and much more tactics.
This plays a huge role in engaging with your clients better. Even in times like the ones we are going through now, sending such helpful emails can help retain the relationship you have with them and reduce the churn thereafter.
This may seem obvious like ‘obviously, we know that’ but how many of you actually take it seriously. Teaching your clients about how you use your product doesn’t start with ‘Click here or click there’. It starts with how such an action can help them cater to their needs better.
For instance, say you are a callback software vendor and a client is catering to your services because you assured them that you can help them grow leads faster and better. Now when you explain your product, explain it according to the scenario below:
1 . Start off by explaining why you decided to create such a solution
2. Show them your product features and explain each of its advantages
3. Give them a tour of the features and explain to them what would happen if they did this action
Interesting Read : How to Listen Actively on the Phone in Sales?
Educating your client should be more in detail and should be presented with live examples that is when your client will be able to understand it better. Now with the crisis going on, educating your clients over how to resolve their queries and for the new features they invest in can help them to retain their interest in doing business with you more.
Imagine if your client understood it, it would create an impression that your solution is user friendly and as you are aware of the first pointer, creating a good impression in the beginning matters.
Look at this chart, the number one stats is one of the main reasons why churn increases. To be precise, if your client doesn’t trust your security measures or the way you protect their data, they will confidently move away.
You are aware that the online world isn’t as safe as you expect it to be. Hackers are waiting for you to commit one mistake so that they can enter the system. Being a modern business, it is understood that your applications will have good security measures that are taking care of your client data and activities.
The point here is that you need to exhibit this more. Showcase your security, how you are helping your client’s data and activities to be more secured. When you are able to win their trust, that is when you know that you are able to convert more clients on your list. This also applies to your current scenario.
When everyone is working from home, there could be chances where hackers might try to enter in. Ensure your clients that even during this time, your brand is still securing their data and activities so that they don’t have to worry about any risks.
Did you know that ‘’60% of users who sign up for your SaaS application will use it once and never come back.’’ and the reason isn’t even because of the faulty products, the reason is a failure to explain how your solution works.
This is important because if you are going to create an onboarding process that is so complicated to clients, they are going to be confused and maybe even move away from it. This cannot happen. Even during the crisis time, you might be able to tap a few clients, but if your onboarding process is complicated, they are going to walk away sooner than they came.
Don’t heat up so much because we have a list of ‘Do’s’ for you to follow so that you can create a better experience for your clients:
1 . Keep it short and simple, don’t use technical words to confuse them
2 . Layout the process of your solutions separately such as how they can track their payments, how they view the CRM and much more. This gives them a detailed understanding of what they want to learn and go further with it
3 . Make the onboarding process a smooth ride with helpful lists which clients can get started with immediately
4. List out what would the clients achieve or receive from such a feature of your solution
5. Every client is different which is why if you personalize their onboarding processes it could win you bonus points
“Open, honest communication is the best foundation for any relationship, but remember that at the end of the day it’s not what you say or what you do, but how you make people feel that matters the most.”
If you experience a high churn rate right now given the current situation the number one reason would be lack of communication. As mentioned earlier, many brands are under the impression that communicating with new clients matters the most. It does but even your existing clients matter too.
Communicate with them often, send them emails of comfort in such a crisis, if they send you emails, respond to them quicker. Consistently send out emails to check up on your existing clients so that you are aware of how they are performing with your solution. With their answers, you can instantly help out and enhance their performance better with your services.
After looking at the image above, would you still leave after such an offer is put forth to you? You wouldn’t and if you apply the same tactic for your brand, your clients wouldn’t leave too. It happens that clients won’t use your solution much or after the free trial they would want to leave.
No matter the reason, don’t let this happen to you. Ensure that you are able to attract your clients before they bid farewell to you. Upgrade their service, offer a coupon, add in extra services or features, but capture them. If you are able to do that you will be able to capture their interest more, you can work on convincing them to invest in you further.
For those in the B2B Saas industry, apart from applying the above practices, the below dedicated Saas practices too can help to reduce churn during the COVID 19 crisis.
To grow your business whether it is Saas or not, the number one thing you can do now in such a situation is to engage and engage and engage more with your clients. It won’t be so likely for you to engage witty new clients given the circumstances but that shouldn’t stop you from engaging with your remaining clients. Communicate with them, hear them out, help them learn more about your products, build a bond with them. During the process of how your churn will reduce, you’ll be surprised.
Now that you are aware of how you can reduce the churn rates for your business, wouldn’t it be helpful if you had the tools that could support your action?
Limecall is a callback solution. It appears as a click to call widget where clients like you can easily engage with prospects in less than 28 seconds. This is true because the widget which is applied on the website offers you two options, connect with prospects on the spot in 28 seconds or schedule a call later as per the convenience of the prospects.
This is a great solution as even in a situation like we are currently going through, you can easily connect with your prospects. Thus when you cater to your clients on time, the churn rates start to fall back.
Starter pack- free, Pro- $35/month, Advanced- $75/month, Enterprise- (reach out to the team directly)
Churn Buster is such a tool that can give the Saas industry a better way to deal with churn. Its main feature is to eliminate all the errors that contribute to the churn. The problem in payments or slower paying process with the use of Stripe, Churn Buster ensures that your audience will continue to fall in love with your solution since they take away all the cons for them to notice.
Choose an integration or tool and the price will be visible.
YesInsights delivers what its name states. It is a feedback platform that gathers the information for why churn is taking place for a brand. Instead of questioning without data, this solution helps you to get all the information you need right from your clients themselves. You can place the widget on your applications or send surveys so that when your clients see it they can suggest or rather place their inputs regarding what they expect from your brand.
This helps you to eliminate the issue which is causing the churn and your brand will continue to function in a healthier route.
Personal pack- &20/month, Startup- $79/month, Growth- $149/month, Enterprise- (reach out to the team directly)
Stunning is another similar application just like the two listed above. It focuses on ensuring that any payment and billing-related activities function with ease. It ensures that your brand doesn’t have to worry about your audience updating information or about when they have to pay their bill, Stunning takes care of anything.
It can be installed easily and also sends SMS notifications with the link of the payment and billing page so that your audience knows what needs to be done and conduct the action accordingly. This is great because it eliminates such small issues quicker so that churn rates don’t increase.
Value based- Free, Business- $500/month, Pro- $200/month, Plus- $100/month, Pre-Dunning- $50
Intercom offers a wide range of features in its solution that can be also used to reduce churn. Intercom helps you to send personalized emails to specific audiences on your list so that you can cater to them well. It also lets you integrate Yesinsights so that you along with that, your action of engaging with your audience becomes more refined.
At intercom, being a solution that makes engagement so much easier over the internet, Intercom realizes that the more you enhance with your audience the better are your chances of reducing churn rates. To ensure that your audience is learning and exploring your brand better during the trial phases, Intercom conducts trigger emails so that your audience knows that you’re always here to assist them.
For basic chat and messaging, Start- $39/month, Grow- $99/month. For automated services and messaging, Accelerate- $499/month, Scale- $999/month.
Firstoffice is a stripe monitoring tool that gives you the metrics of how many new customers have joined your business for the month and what is your monthly recurring revenue. The information is displayed as charts so that your team can understand how well the performance is. Even for the plans, you set, you can get a view of how many have opted for which plan.
With Firstofficer, such data in hand is important because it gives you an idea of what your audience is expecting from you. It helps you see their actions and then helps you to prepare the next course of plans to cater to them better.
Hobby-$29/month,Startup-$79/month, Professional-$149/month, Business- $249/month
You can now manage all your affiliate and referral activities with a single click on the Ambassador dashboard. You can go on to create campaigns to engage and attract your prospects better and also allow them to refer to your solution. When you want to start measuring the ROI, all you need to do is give the Ambassador an appreciation for giving you the referrals with virtual currencies, cash and even points.
This solution can also be integrated into any of your third-party applications. If you keep your one prospect happy, chances are they will spread the word to use your solution. And when that happens, there is no room for doubt, the referred friend will join in hence increasing your new prospects count and reducing churn rate.
Need to schedule a demo first.
As you are aware earlier that when you make the onboarding experience better for your new clients, chances are they will continue to invest in your solution. Appcues is one such solution that makes it easy for you. You can personalize the onboarding process of your solution as per your requirements such as you can add a screenshot or a video, anything that will make your users understand what your solution is all about.
With this solution, you can conduct multiple onboarding tactics and measure the results for better efficiency. You can also add quick messages and CTA’s with your application so that everything can take place in one place, again making it easier for your users to reach out to you.
Essentials- $249/month, Growth- $879, Enterprise- (reach out to the team directly)
Planhat is a customer success tool that ensures that keeping existing users happy is a priority. This is a solution that helps customer success managers to grow better by reducing their churn rate when they start to manage their renewals efficiently. You may not be able to capture new prospects at the moment but that doesn’t mean your sales will drop, catering to your loyal prospects can help your brand function better.
Startup-$500/month, Professional-$1500/month, Enterprise- (reach out to the team directly)
Outreachplus is a personalized email marketing software. The main feature of this solution is to ensure that email reverts are received in positive replies. Engaging with email during a time like this is important because with your one email you can either tap new clients or lose out on them which is why your email creation needs to be the best.
Outreachplus personalized all emails being created and ensures that consistently follow-ups, relationship building, and lead generation is taking place smoothly. Again when this action takes you can ensure that churn rates drop as catering to clients is taking place more efficiently.
Free plan, Solow- $18/month, Multi user- $38/month, Agency- $79/month
For B2B Saas companies, you can convert the present choices into opportunities.
A few things to be kept in mind would be:
1 . Keep your pipeline active, ensure that you’re investing more time in sending your client webinars, free trials and more. Keep the as engaged with your brand solution more
2. Make a plan for how you want to conduct your next few months with such a crisis in hand. See how you’re going to enhance your client experience and make them retain their attention towards your solutions deeper
3. Focus on your brand exhibition rather than selling
Currently, with the crisis happening, the main focus of your B2B Saas business should be to pull and retain your clients for long. Selling will take place when your clients are confident with the way you make them feel when they use your solution.
As for the COVID 19 virus, the best advice would be to follow the rules, stay home and keep yourself healthy. The period won’t last for long. Remain patient and positive and continue to serve your clients at utmost priority.
©2019. All rights reservedwpDiscuz