How to Improve Customer Satisfaction to Reduce Churn

Knowing your customers is key to reducing churn.

There is nothing worse to a business than losing a valued customer. Even if you are losing the occasional customer, the impact is draining to moral. Negative word travels fast regardless of which type of service or business you provide. If your reputation gets tarnished it will be difficult to repair. The key to reducing churn is keeping your customers satisfied.

Instructions

1. Know your value proposition and articulate it clearly. Customers are motivated by a business or service that knows its own deliverables. Create a consistent way to articulate your business's impact and back your story with tangible examples of success.

2. Provide excellent customer service. Consistency in service is a key way to develop loyalty. Create an ideal state of customer service and work to maintain that practice with every customer. It is key that you understand what your customers need to feel satisfied.

3. Survey your customers to understand where dissatisfaction exists. Hire a professional metrics organization who can develop professional surveys that provide you with clear feedback. Create a plan to address the determined needs.

4. Develop loyalty programs that motivate customers to keep them coming back. Offer a freebee after every fifth service or sale. Offer discounts to customers who come back a second time. Send coupons to customers to entice their return. Regardless of the strategy, continuously engaging your customers lessens their tendency to wander.

5. Deliver what you promise. Know what your business can accomplish and where challenge areas are. Do not guarantee something outside of your strengths. Be clear of what you can offer, articulate it clearly and deliver.

Tips & Warnings

• Treat your own employees well. If the members of your team are happy and motivated, that energy will spread to your customers.

• Make customer service a culture in your business. Provide every person an opportunity to develop strategies for customer satisfaction, share them with the whole team and then use them.

• Customer service does not mean the same thing to all people. Be aware of sub-populations that you serve and elements that increase satisfaction.

References

• Quirk's Marketing Research Review: Reducing Customer Churn
• Microsoft Business for Small and Midsize Companies; Jeff Wurio
• Inc Magazine: How to Deliver Great Customer Service; September 2010