Churn is the number of customers you lose every month or year. It is a real problem for many businesses.
Have you ever seen a leaky bucket? You know, the kind where there is a hole at the bottom that water keeps dripping out of? This is a great way to think about churn. Your business is like that bucket – it has a certain number of customers that represent your company's revenue and profits, which represent the water in the bucket. Churn is like the hole at the bottom of that bucket that is constantly leaking out more water. The worse your churn, the faster your bucket leaks, and the more water it loses every day.
For most businesses, reducing churn is a top priority. It's the difference between profits and losses, and between growth and stagnation.
An Overview of Customer Success
Customer success is the process of helping your customers succeed in doing what they want to do with your products and services. This involves identifying how customers use your products and services and providing them with guidance and assistance as needed. This can include things like account management, product training, customer support, and more.
One of the core benefits of customer success is that it helps reduce churn in your business. This is because the better you can help your customers use your products and services, the less likely they are to churn. If your customers are successful with your product, they are more likely to stick around.
How to Use Customer Success to Reduce Churn
In order to use customer success to reduce churn, you have to know what's going on. This includes knowing the issues, concerns and wants of your customers.
1. Listen To What Your Customers Are Saying
The first step to reducing churn is to listen to what your customers are saying. This means paying attention to your customers' interactions with your company and using that feedback to make changes to your products and services.
One of the best ways to capture this information is to record your customers' calls and meetings. You can then use information learned from these recordings to improve your products and services over time.
2. Respond To Issues and Concerns Early, Before It's Too Late
If your customers have issues or concerns, show that you are working to address them. Don't wait until they leave to try to fix it. The sooner you can respond to your customers' concerns, the better off you'll be. Using insights drawn from your interactions with customers can help you identify issues and concerns faster.
3. Be Proactive vs. Reactive. Go the Extra Mile For Your Customers
Don't wait for customers to come to you with issues or concerns. Good instrumentation of your products and services can help you locate user patterns, potential issues, and opportunities for improvement. You can then proactively address those items with your customers as you see them.
Use your customer success team to provide education and guidance to your customers. This can mean anything from product training to educational content. The better you can help your customers use your products and services, the less likely they are to churn.
4. Use AI Meeting Capture To Understand and Optimize Customer Behavior
AI can help automate customer success processes, including meeting capture. Using AI meeting capture can help you capture customer conversations and interactions. You can then use this information to analyze customer interactions, allowing you to identify trends representing potential problems or opportunities for improvement. Tracking customer interactions over time also helps determine if you are improving how customers use your products and services, or if you need to make changes.
5. Ask for Customer Feedback
You can ask for customer feedback in a variety of ways. This can include asking for customer feedback at the end of a meeting or when resolving a customer support ticket. You can also use surveys to ask for customer feedback. Asking for customer feedback is a great way to hear from your customers and understand what they want from your products and services. Integrating requests for feedback directly into your products and services is another great way to get more information from your customers.
6. Come Bearing Gifts: Offer Unexpected Benefits and Incentives
Give your customers unexpected benefits and incentives. You can offer them something of value that they weren't expecting. For example, you can offer to waive a fee or give them a discount on their next purchase. People enjoy free stuff, and they also enjoy feeling like they're getting a good deal. This is another great way to build customer loyalty and increase the chances that your customers will stick around for the long haul.
7. Engage in Careful Customer Onboarding; Education Leads to Retention
It's important to carefully onboard new customers, especially if they're coming from a different platform or system. A poorly executed customer onboarding process can have serious consequences. For example, it can lead to churn or prevent users from effectively using your products and services. The best customer onboarding leads to retention by helping new customers get up to speed quickly.
8. Follow Up When Churn Occurs On What Happened
When a customer churns, you should always follow up and ask what happened. This can help you understand what went wrong and why customers left. This is one of the best ways to learn how to prevent your customers from churning again in the future.
9. Learn To Delight Your Customers In Unexpected Ways
If you give your customers something they want but didn't ask for, they'll be delighted. This is yet another great way to build customer loyalty and keep your customers from churning. This can include anything from free new features or product updates to unexpected coupons or giveaways. It's another great way to stand out and show that you care about your customers.
Customer success is an important part of growing a business. Using customer success techniques can help you reduce churn in your business and keep your customers happy. Using AI meeting capture from Hyperia can help you capture customer information and interactions, allowing you to get new insights into how your customers use your products and services. These insights can help you identify and address issues, concerns, and wants faster, improving customer success. Hyperia joins your customer calls as an AI participant, capturing and recording the entire conversation. Hyperia indexes customer interactions into a searchable knowledge base, with trend analysis and reporting functionality. Hyperia's AI meeting capture solution is a great way to reduce churn and help your customers succeed.