What Does Sales Churn Mean?
Sales churn is a situation that occurs when customers or clients stop using the services of a business. So, when a significant number of customers abandons you, your business goes through a very steep drop in income.
What are Causes of Sales Churn?
There is no single cause that can lead to this problem. There are, in fact, several causes:
- Poor customer service.
- The quality of your services may drop.
- Your competition may supply the market with a better offer.
- Your team might fail to handle a customer overflow.
- Your team might be undertrained.
- Your technical support might not be able to handle traffic, etc.
Whatever the reason may be, the outcome will still be the same – sales churn. However, you should have in mind that, in most cases, customer experience is what counts. Your customers will leave you without a second thought if they don’t feel pleasant while doing business with you. To be precise – nine out of ten people will abandon your business if you provide them with poor customer service.
After they make a decision to do so, you can be sure that a piece of information will be shared with their friends, and not only in person, but via social media as well – around sixty percent of displeased customers won’t even hesitate.
How to Deal with It?
It means that you will have to conduct serious damage control. When the number of customers who abandoned your business reaches a high level, you won’t be able to grow your business. It will be like trying to plant fruit on infertile soil.
What makes this process problematic is that customer retention costs significantly less than acquiring new customers. When this happens, you’ll have to start over and:
- Find new leads and guide them through the sales funnel.
- Develop and conduct advertising strategies.
- Increase your sales.
Considering the fact that each of these three basic processes needs to be restarted, your business will lose a lot of money. We already mentioned how it’s more expensive to lose a customer than to gain one – well, it’s seven times as many.
For starters, you need to improve your customer service. The right way to deal with your staff is training; for them to be able to provide your target audience with a premium experience, they need to know how to do so.
Furthermore, you need to insist on personalization. A personal bond is what will make your customers come back and become loyal to your business. For that to happen, your agents need to be able to develop professional relationships that evoke emotions.
Personalization is the key to a successful advertising campaign as well. Therefore, make sure that you approach every potential customer by showing that you know about their interests, previous purchases, and suggestions.
How to Prevent It?
Sales churn won’t happen suddenly; you will be able to see alarming signs, which is when you need to respond to the problem and deal with it by applying the methods we just mentioned. This isn’t a catastrophic problem – your business can get out of it safe and sound.
However, you should do your best to prevent it. This business age is all about customers, which is why you need to direct your full attention their way. In order to do so, you will need a proper piece of software – which is why bpm’online created a powerful CRM.
With this software, you’ll be able to build individual customer profiles, keep a record of all the new information you gain about your customers, and be able to retain it in a matter of seconds.
A piece of software like this will be most useful in the process of damage control as well. Therefore, you should make it a part of your training, teach your team how to use it properly, and it will help you achieve the desired results.