A Beginner’s Guide to Churn Mitigation
In the subscription economy, quickly mitigating and minimizing churn is a critical driver of business success. It’s debatable whether or not a 0% churn rate is possible, but companies can reduce their churn rate down to the optimal level.
If you’ve boarded the Customer Success train, you probably already know why reducing churn is so important. In short, it’s cheaper to retain and grow your existing customers than it is to acquire new ones. Retention is the best way to achieve business success. Guess what the opposite of retention is? Yup, churn can really hurt your company. Here’s a quick guide to learn how to mitigate churn from your earliest customer engagements.
Acquire The Right Customers
This is huge, understanding your audience is numero uno when it comes to churn mitigation. Bad-fit customers are meant to churn, but before they do, they’ll consume your Customer Success team’s time and resources. To make sure you are getting the right customers you should:
- Align your pre-sales teams (Marketing, Sales) with your Customer Success team to define the appropriate buyer persona.
- Highlight the leading benefits and features of your product on your website and throughout the sales process.
- Be transparent about pricing, hidden fees might be a deal-breaker for some customers.
Deliver The Best Onboarding Experience Ever
User-friendly onboarding is the first step to creating loyal, engaged customers. From the get-go, make sure your sign up process is easy, quick, and intuitive. You want to capture that first spark right away and keep it going. Start delivering value from the first interaction: a welcome email should be much more. The welcome email is a great way to get people excited while educating them. Poor onboarding is hard to fix, it takes up a lot more effort and resources, and that journey is more likely to end in churn.
Set Goals With Your New Customers
People don’t buy your product, they buy the outcomes it will deliver, i.e. the solution to the problem they are trying to solve. What is your customer trying to achieve and how can you deliver that value to them within a given time frame? Sometimes, goals are too shy or too extravagant, that’s when Customer Success Managers have to intervene. This can happen through:
- A strong hand-off process between your Sales and your Customer Success teams. What did the customer ask the Sales rep during their first demo? Which part of the product was the deal-maker?
- Customer interviews during onboarding
- Surveys and the drafting of customer personas.
- Executive Business Reviews (formerly called QBRs).
Minimize Time to First Value
A customer buys your product for the value it will deliver. It’s crucial that you deliver and demonstrate value as early as possible. There are many ways to deliver value in early stage onboarding stages, for instance: