How to reduce customer churn

What makes customers stick around for years and turn into loyal advocates?

Let’s look at some of the factors that customers love about Vintage Boho Bags and what makes them return.

Let’s see - Amazing product quality, fabulous customer service, fast shipping, and prompt resolution, to name a few.

Engaging customers at all stages in their shopping journey is imperative today to build loyalty. 

The goal of this blog is to share practical tips that you can use to reduce customer churn or enhance your existing strategy. We're not just focused on stopping customer churn; we want to help you connect better with your existing customers. It's about creating personalized experiences and cultivating lasting relationships. 

Let’s start by understanding customer churn.

‍What is customer churn?

Customer churn is when customers stop using a brand’s products or services, which is a big deal for most brands. Businesses worry about customer churn because it directly affects their revenue and growth.

The first part of reducing customer churn is tracking how many customers you lose over a certain time. This happens when people cancel subscriptions, stop using your services, uninstall your app, or leave altogether. 

‍How to calculate customer churn

Calculating your customer churn rate is simple. Look at the number of customers who leave during a certain time and divide that by the total number of customers. 

So, if a brand starts with 100 customers and 10 of them leave, the churn rate is 10%. 

Knowing your churn rate will help you improve the shopping experience and keep customers happy. It can also give you an idea of how your churn rate compares to others in your industry.

Reducing customer churn is important for a few reasons:

• Keeping existing customers is cheaper than getting new ones. It costs more to get a new customer than to keep one who is already around. 
• Customers who stick around and keep buying contribute a lot to the brand's revenue.
• Reducing churn helps keep a positive brand image. Happy customers become brand ambassadors and contribute to the brand’s success and growth. 

By reducing customer churn, businesses can make more money, keep customers happy, and grow at a steady rate.

‍How to reduce customer churn

Mitigating customer churn means preventing customers from leaving. 

One way to do this is by using behavioral data to understand what they like and making sure you give them that.

Focus on providing quick resolutions to customer queries to create a positive and friendly experience. 

‍Understand your existing customers‍

Understanding your existing customers is necessary to build strong relationships and make them loyal to your brand. 

It's all about understanding what they like, how they behave, and what they need. 

Are your app users more attracted to your discounts and offers? Make sure you show them the best deals on the app.

Check out how Vintage Boho Bags has an attractive image and banner on their app’s homepage.

Review data about what your customers buy, how they interact with the brand, and what they say. This way, you can learn a lot about what makes them happy.

This understanding goes deeper than just knowing basic things like age or location. It's about getting the unique qualities of each customer so you can customize your products or services to fit their specific needs.

Listen to what customers say and make changes based on their feedback to improve your brand credibility. Understanding existing customers helps you connect with them, creating loyalty that goes beyond just one purchase.

‍Nurture customer loyalty

To show appreciation and encourage customers to come back, implement loyalty programs, and give special discounts and early access to new products. Communication is also key in keeping this relationship strong. 

Check out how Skin Kulture sends out push notifications to inform their app users about flash sales, combo offers, and giveaways.

Sending newsletters, personal emails, or chatting on social media helps keep your brand in the minds of customers. Celebrating special moments, like anniversaries and birthdays, makes this bond even stronger.

‍Customer satisfaction and attrition

There is high correlation between customer satisfaction and attrition. When your customers are happy, they’re more likely to stick around, buy more products, and tell others how awesome your brand is.

Read this article to learn how you can improve your average customer lifespan.

Use surveys, feedback, and reviews to keep an eye on customer satisfaction and help your customers communicate with you. Customers will tell you what's good and what needs fixing. 

It’s important to have open and honest communication where customers feel safe sharing their concerns. This builds trust and stops small issues from becoming big problems. Show customers that your business is always trying to improve. This will not only stop customers from leaving but also build a group of loyal customers who stick around for the long haul.

On the other hand, when customers start leaving, it's a sign that something might be wrong. This is called customer attrition. Understanding why customers leave helps make changes to keep them around. Paying attention to attrition is all about finding patterns in what makes them unhappy.

‍Provide a convenient shopping experience with a mobile app 

Stopping customers from leaving before it becomes a problem is all about being smart and looking ahead. Provide a memorable and seamless shopping experience with a mobile app. 

A mobile app also helps you own first-party data - you can track how your customers act and what they like. This data helps you notice early signs when customers are unhappy or not interested.

With a mobile app, you can ensure the overall experience is always excellent. Features like push notifications, live selling, easy payment options, and advanced analytics make mobile apps the go-to tool for brands looking to engage their customers and reduce churn.

‍Supporting retention through effective customer support

Helping customers stay happy is the goal of good customer support. Ensure your customer support is quick and helpful to turn a not-so-good experience into a positive one. This way, you can show that your brand cares about fixing issues and meeting customer needs, increasing retention and preventing churn.

Always be sure customers can easily get help through multiple channels like live chat, email, or phone support. But it's not just about fixing problems; it's about going above and beyond to make customers excited. Being proactive is very important. It means trying to figure out and solve problems before customers even ask for help. Looking at data about common issues helps create solutions ahead of time.

Skincare and wellness brands, Skin Kulture and Vilvah, have nailed this strategy. They list out common customer concerns on their app homepage so customers can self-serve and find solutions without your intervention.

‍Reduce customer churn and increase loyalty with Vajro

Reducing customer churn is an important part of building a strong and successful business. Be sure to make your existing customers feel important, supported, and happy.

Vajro is your starting point for elevated customer experiences, increased customer retention, and fortified loyalty. Through personalized communication, your customers feel valued and connected.

To build a great mobile app for your brand, try Vajro for free today or get a demo.