Most shops and bistros focus chiefly on sales and the dining experience and give less consideration to the importance of making sure that their customers remain their customers. Your churn rate is the overall percentage of customers who have decided to stop purchasing from you. The best case scenario is a 0% churn rate; however, this is not realistic. But, in this post, I will share with you a few ways you can keep your churn rate as low as possible.
Remind Your Customers You Are Giving Them the Best Product
Your customers have plenty of options no matter your industry. There's a fair chance that you're not the only restaurant or retailer that can give them what they need, so don't take your customers for granted or fail to recognize that there's competition for your customers and their dollars.
Considering this, whenever you release a new customer email or feature, make sure to remind your customers of the quality you offer with your product. You don't have to stick clunky slogans in every blog post or press release, but you do want to remind them that any new or recent feature you are offering is going to provide a sense of value to your product. Also, be sure to thank your customers or clients for the chance to present your product or service to them, it makes them feel valued. As a result, should they have a negative experience with a rival company, they'll likely come back to you and your brand.
Avoid PR Mistakes and Bad Decisions
This one seems easier than it is. The odds are that you won't know you've made a bad decision until it has had a significant backlash against your company. In this case, it's all about how you manage the issue. The fact is that bad PR is unavoidable for most companies if they are successful and grow big enough.
A good example of a PR blunder was when Netflix increased their prices. Netflix thought it would be a good idea to split their streaming service from their DVD delivery service and raise the prices on both. People did not react well, and there was a significant backlash from the customers. It's very likely that Netflix lost some customers they might not ever get back as a result, increasing their churn rate.
Sometimes bad PR can be the result of a system crash, computer bugs, or flaws in the business model. Two examples are the Dropbox password debacle and the negative press regarding Airbnb. In these cases, it was the job of the company, and more specifically the CEO to find a way to manage each disaster quickly and restore brand confidence.
Understanding Your weaknesses
Are you aware of why people might not want to dine at your restaurant or shop at your store? Are you aware of what your company fails at on occasion? If you've already decided that your business is flawless, you have made a massive mistake, and you have failed to listen to your customers.
Every business has its weaknesses, and you need to know yours intimately. Also, you need to know how to fix these weaknesses quickly and how not to let them turn into bigger problems. There are many cases of companies that failed to see a weakness coming that lost significant amounts of revenue as a result. What you need to remember is that those who try to take your customers, essentially robbing you of revenue, are trying to become the market leader by taking advantage of your weaknesses. These are your competitors, and you need to stay on top of your shortcomings to make sure they don't capitalize on your faults.
An excellent way to identify your weaknesses is setting up an effective system for collecting customer reviews.
Deliver On Your Promises
Customers will become loyal to your eatery or your product because you have provided them with a unique advantage over your competition that they can't find elsewhere. However, if you neglect your efforts to keep promises your customers will leave you. If Disneyland weren't the happiest place on earth, there'd be no repeat visitors. If Apple phones weren't so easy to handle people would stop buying them.
The same goes for Amazon, if they suddenly failed at prompt deliveries or at having a massive stock of goods, they would go bankrupt. People rely on the promises companies make regarding their brands. It is essential to the integrity and profitability of your brand, as well as to lower your customer churn rate as close to 0% as possible, that you keep your promises.
Gaining Insights from Traffic Analytics
By using reliable traffic analytic software you can determine who makes up your audience of repeat visitors. You can also account for the length of time users visit and how they're navigating through the store or location. With this data, you're able to getting a deeper understanding of your customers and create targeted campaigns to ensure they remain loyal to your business.