What is Churn Rate? How to Reduce it?

A churn rate measures how many subscribers leave a company within a specified period. (week, month, year)

For example, if you have 5000 customers at any given time and 300 leave over a month, your churn rate for that month is 6%.

It can seriously impact your business growth if more customers leave your company than you can generate. It is also 5 to 25 times more expensive to acquire new customers than to keep existing ones!

If you suffer from churn, here are some ways to reduce it:

1) Find your weaknesses

First of all, check why your customer leaving and what weakness you have. Every business has weaknesses, and every business goes through changes. If you don't want to bother with them, you can ignore them or try to improve them before a customer becomes frustrated and leaves.
You can check:

• Your Website Design
• Customer Service
• Tool upgradation
• Pricing
  You will gain valuable insight into how you can make your customers happy by asking them about them!

2) Improve your Service

Poor customer service is a major reason why customers leave. Oracle found that 89% of customers change brands after a negative experience with another brand. Good service is essential to any business. You don't work well if you don't solve people's problems. Make your service priority and then take care of the rest. When you provide good service, your customers become permanent customers! Make sure your service is up to par!

3) Check your Pricing Plan
The main reason why your competitors want your customer is because they want it as their own. In this competitive market, businesses know how to attract customers. If you charge a high price compared to your competitors, there is a chance that your customers will go to your rivals. In order to avoid your customers feeling overcharged, you must pay close attention to your pricing plan.

4) Do something extra

Going the extra mile for your customers never hurts. Are there any other services they might find useful in addition to yours? Would you be able to provide a tutorial or guide on how to use your tool? What are some tips for using certain features? By providing this information, you will engage your users and make it easier for them to solve their problems.

5) Use triggers/popup on your site

By sending the right emails at the right time, you can reduce churn. If a customer visits your page once, subscribes, then never returns, you might want to send an email asking for feedback, or tell a long-time customer who has become inactive, "We miss you.".

6) Appreciate your long-time customers!

Keep in touch with your customers twice a month as much as possible so they know you value their business. Customers will leave if they feel unimportant to you. They will leave if they think they deserve more than you give them. You can offer discounts to long-time customers; this is more important and valuable to you! Send them a birthday greeting (with a small gift inside), a free service after a set time or number of times they used your service, or a special discount for those who renew their license.

7) Use tools to reduce your churn rate

Now there are some tools that can help you to reduce your churn rate in different ways!

Here is Churnfree this tool offers the retention flow when your customer wants to leave your service and press the cancel button, then it will offer them multiple offers to keep them connected with your service/membership. If the customer will not accept the offer and go forward with the cancellation, it will ask them why they are leaving your service.

This will help you better understand why they are leaving, and you can improve these factors in a future update.

If you follow the major factors, most other things will automatically improve.

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