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Reducing customer churn

Keeping new customers satisfied is compulsory if you are to have any chance of turning them into regular customers

As an e-commerce business owner, you probably understand the important role that "trust" plays in converting first-time visitors into paying customers.

This set of visitors would never complete the checkout process if they find anything that makes them feel uncomfortable or doubt the credibility of your service. So, keeping them satisfied is compulsory if you are to have any chance of turning them into regular customers. Here are some other benefits you will gain by satisfying new customers: New referral opportunities — First-time customers are usually more enthusiastic about sharing your e-commerce website with their friends especially when they love the experience. New reviews — While your old customers may be tired of…

Learn how to transform uncertain prospects into brand advocates one step at a time

Marketers often see the customer journey as a linear progression of four stages: Awareness Interest Consideration Purchase But there’s one important thing most of us tend to forget - the customer journey is no longer linear. Gone are the days when you could easily walk alongside your customers, guiding them all the way to the checkout page. [si_guide_block id="86160" title="Download our Free Resource – 10 common website customer experience mistakes" description="This guide reveals examples of poor website design from different sectors which are commonly seen, but best avoided."/] Today, your prospects can unexpectedly jump in or out at any point. Now, this doesn’t mean that the framework of the customer journey is no longer relevant. You should still think about these stages, but the way you approach them needs to change. Your ultimate goal today should be to provide a…

Preventing churn is key to improving revenue

For subscription-based businesses like SaaS companies, churn rate is a crucial metric that determines overall performance. Simply put, churn rate is the rate at which customers cut ties with your service during a given period. This percentage gives you a clear idea about your customer retention, which is an important factor defining a company’s success. Looking at the below chart you'll see that the lower the churn rate, the better your business is performing.

Importance of Churn Rate in SAAS

Churn rate is easily one of the most essential metrics when measuring the performance of SaaS businesses. Totango reports that the fastest-growing companies will reduce churn rate less than 5%. For SaaS companies, a lot of time and money is spent on acquiring customers. Since this investment pays off over time, the…

Customer satisfaction measurement approaches from BT and Henley Business School

Customer effort score may be the new kid on the block, but just like other loyalty measurement tools such as Net Promoter Score (NPS) and Customer Satisfaction score (CSAT), it sharply divides opinion. In this article I review my discussion with Professor Moira Clark from Henley Business School and BT's Dr Nicola Millard asking whether customer effort score is help or hype? First emerging in 2008, the team behind the research, the US Corporate Executive Board (CEB), challenged the notion that companies must ‘delight’ customers and argued instead that what customers really want is to simply be given a satisfactory solution to their service issue. Additionally, the research claimed that excessive levels of customer service (such as offering free products or services) will only make customers slightly more loyal to…

Tips on keeping your online customers active

One of the most fundamental lessons that every marketer learns during the first day on the job is that it costs around six to seven times more to acquire a new customer than to keep an existing one. So says Daniel Binns of Epsilon. In today’s ultra-competitive market, where revenues are under pressure every quarter and margins are continuously squeezed, this lesson is more relevant than ever. The problem is that we now live in an omnichannel world. The brave new realm of always-on communications means consumers are presented with more choice through more channels than ever before. Brands have more opportunities to connect with customers than in the past, but also have to fight harder to win a share of attention in a fiercely competitive market. Winning customers is only half the battle though. Once a brand has connected with a consumer, it needs to devote…