Reducing your customer churn rate: five tips for ensuring customers stay loyal to your brand

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By Aaron Haynes, CEO of SEO fulfilment partner that supports marketing agencies and professionals, Loganix

Haynes: driving customer loyalty

As a business owner, you want to have customers who are loyal and come back to spend money with you time and time again. This is because customer retention tends to be cheaper than acquisition, and increasing your customer retention rate by just 5% could boost your profits by 25-95% (SmallBizGenius). 

In this article, we’re going to talk about how you can reduce your customer churn rate and ensure people stay loyal to your brand.

Let’s get started.

What is your customer churn rate? 

Your customer churn rate is the rate at which customers stop spending money with your business. You can calculate this by choosing a specific time period — let’s say the last six months — and dividing the number of customers who have made repeat purchases by the total number of people who have shopped with you in that time.

You want this rate to be low in order to increase your bottom line. Loyal customers mean more money in your pocket!

Let’s break down some of the ways you can reduce your churn rate.

Always provide first-class customer service

Good customer service is one of the biggest reasons people will continue to come back to a company! If you can show your existing customers that you care about them and the experience they have with your business, you should be able to reduce your churn rate.

Here are a few ways that you can offer first-class customer service:

  • Teach your team to go the extra mile
  • Provide multiple ways to get in touch with your customer service team
  • Personalize your marketing
  • Reply to inquiries quickly
  • Apologize for any inconvenience
  • Offer FAQ web pages where customers can find the  answers to their questions

If you can provide great customer service, you’ll make it more likely that people will return to shop with you again. Even someone who has a complaint about your products or services will be left happy if you tend to them quickly and effectively. So, ensuring your customers always have a positive experience should be at the top of your to-do list. 

Ask for your customers’ feedback, and put it to good use

A particularly vital step in reducing your customer churn rate is to work out why people don’t come back to your business. You can learn more about this by talking to your customers directly. 

There are lots of ways to get feedback from your customers! Here are just a few examples:

  • Conducting surveys with people who recently made a purchase
  • Monitoring your mentions on social media
  • Offering a feedback form on your website

Once you have suggestions from your customers about what’s working and what isn’t, you’ll be able to better determine where changes should be made. Look for common themes in the answers from your customers.

Don’t be afraid to offer them a discount or other incentive as a thank you for providing you with feedback, either — this will entice people to give you more helpful information.

Publish content that will help your customers make informed buying decisions

If your company can help people make the best purchasing decisions to suit their needs, you’ll be much more likely to get repeat customers. And, content is a very effective tool for helping people find the right products and services for their needs! Here are a few types of content that will do this effectively:

  • Buying guides that outline everything someone needs to know before purchasing a product or service
  • Comparison pieces that compare different products or services directly
  • Case studies that show how effective a product or service was in a particular scenario
  • Product demonstrations that show a product in action

Let’s look at a few examples of companies that produce this type of content to give you some inspiration for your own.

For instance, FreshBooks, an online accounting software company, has a buying guide outlining what cloud accounting software is and who needs it. 

The article talks about the benefits of using the software, what it costs, and more. This helps website visitors determine whether they need cloud accounting software or not, so they won’t make an error by investing in FreshBooks’ services when they aren’t quite suitable.

Helping people to decide whether your products or services are actually for them is a great way to ensure you receive positive reviews and repeat customers. While it might cut down on the number of initial purchases people make with you, the customers who shop with you will be much more informed and happy with their investments. 

On the other hand, Best Value Schools has published a wide range of comparison pieces that will help their website visitors to make a very important decision. 

They help prospective students to choose their next schools and programs, so they have a wide range of round-ups, such as their article about the most affordable MBA programs. They outline the locations, program costs, pass rates, and more of the most affordable courses out there. 

On your website, you can compare similar products or services in this way and make recommendations in order to boost customer satisfaction without being too promotional.

Lastly, Beauty Bakerie, a cruelty-free cosmetics brand, uses product demonstrations to manage their customers’ expectations and boost their loyalty. 

In one of their videos, the CEO and founder shows how she applies their products. This shows that the founder loves the products just as much as their customers do! It also humanizes the business, which will also contribute to boosting their customers’ loyalty. 

On your website, don’t be afraid to show people on your team using your products or services — it’s a great way to ensure your customers know what to expect, so they love their purchases and come back for more.

Provide incentives to encourage repeat purchases 

Another great way to build customer loyalty is to incentivize repeat purchases. This means giving your customers a reason to return to your website or store time and time again. 

For instance, you can do this with loyalty programs, where a certain amount of money spent leads to a reward, whether that’s coupons that are sent in the mail or discounts that are emailed to your customers. Everyone likes free stuff and saving money, so offering a small discount from time to time can help reduce your churn rate.

In order to make these types of discounts and programs effective, you need to be straightforward with your advertising. Highlight any new loyalty programs and encourage people to sign up by telling them how many points they will receive. You can also send “We Miss You!” discounts that encourage customers that haven’t purchased in a while to spend with you again. Be creative, and don’t be afraid to shout about any exclusive incentives or discounts people can access if they continue to shop with you.

Create content that provides value, so your customers keep coming back

If you want people to make repeat purchases, you need to give them a reason to visit your website time and time again. One of the most effective ways you can do this is by publishing high-quality, informative content that your audience will be interested in. 

There are lots of ways that you can come up with content ideas. For starters, you could take a look at what your competitors are doing — if you create something similar or, alternatively, cover topics that others in your field aren’t, you’re likely to draw in more readers.

You should also check in with your customer service team in order to see if there are any questions that they commonly get. Creating content off of these questions will not only save your customer service team time but show your customers that you understand them, making them more likely to be loyal to you.

You can also conduct a bit of keyword research. Head to a keyword research tool like Google Keyword Planner with a list of topics and phrases related to your business. Google will provide you with a list of keywords that people are searching for on these topics. This is a great way to ensure that you’re creating content that people are interested in.

Let’s look at a few examples of businesses that do an excellent job of creating informative or helpful content for their customers.

For instance, Bay Property Management Group, a real estate management company with multiple locations across the East Coast, provides value for their target audience using their spring cleaning and maintenance checklist

This checklist tells the reader everything they need to do before welcoming a new tenant, as well as how to close down for the season. By offering this list to their target audience of homeowners renting out their houses, Bay Property Management Group can ensure that their audience comes back to use this checklist time and time again, building their brand loyalty. 

On your website, consider whether there are any processes you could break down for your customers. Simplifying them into checklists is a great way to come up with fresh content!

At Loganix, we do something similar with our domain authority checker tool. This free-to-use tool can gather data on any website and tell you how strong its backlinks will be. 

Acquiring links is a very important part of search engine optimization (SEO), and this tool can help ensure that a user is doing it correctly. This tool helps build trust with the Loganix target audience of marketers or business owners and encourages people to use our other services, increasing loyalty. On your website, think about what types of free tools you can offer to your customers to provide value and keep them coming back for more. 

Lastly, Trader Joe’s, a grocery store chain, does something a bit different in terms of publishing informative content. On their website, they regularly release news updates about the latest products they’ll be stocking. 

This article in particular features the Everything and the Elote yogurt dip, a summer snacking favorite. People who regularly come to the Trader Joe’s website to get meal and snack inspiration will surely want to stop into the store themselves to make a purchase, making it great at drawing in customers. On your website, don’t be afraid to highlight what products and services are new and exciting! It will give customers a reason to keep checking back, and increase the chances of them spending money while they’re there.