Skip to content

Top 5 Tips For Reducing Customer Churn

When we talk about customer churn it really boils down to determining why customers leave and what you can do to get them to stay. Customer churn can be anything from service cancellations, closing of an account, failure to renew etc. No business wants this, but every business experiences it and it’s completely normal. The main thing to keep in mind is that it’s totally preventable with the right strategies.

Below we will share 5 great tips on how to help your business reduce its customer churn rate and in turn boost customer retention.

1.  Stay proactive

Customer service has a very negative perception across all industries. Customers will often let issues go unresolved rather than make that call. This is a very big problem for many companies. Some reports suggest that upwards of 90% of customers churn without ever complaining and the company is left to wonder why they are losing customers.

The Solution is to be proactive and and start asking questions. See what kind of experience they are having with your company and if they need help. Customers are also great for getting suggestions on how to better your service. One great way to find out how things are going is by using customer surveys. This is a great way to measure customer loyalty and help you make any improvements. This is something to incorporate on an ongoing basis. Every 30 days, 90 days, 6 months etc. Having specific feedback at these intervals will help you see what the fall off points are when loyalty and customer satisfaction start to decrease.  Find out more info on using customer surveys here:

2. Turn to SAAS businesses that can help reduce churn

Statistics are very clear in that increasing your customer retention by a mere 5% can yield from 5 to 95% in increased profits. Therefore, it is crucial that businesses are implementing a churn reduction strategy. Remember, customer acquisition will cost you much more than customer retention.  This is where looking at a SAAS provider that can help you reduce customer churn can be a lifesaver for retaining those important customer relationships. is a great option, as it assists you in helping users right before they are about to delete their account with your business. They equip you with a customizable iFrame (HTML document embedded inside another HTML document on a website), which is then embedded in your app at the point where account deletion would take place. Instead of only offering an option to delete your account, they provide users with other helpful options such as: pause billing, extend trial period, get a discount and more.  They even help you track feedback which is key to improving your service and reducing future churn.

3. Always find out why customers leave and learn from it

There is always a reason why customers end up cancelling a service. They may want to see how a competitor might be a better fit or they are no longer in need of your services. The easiest way to navigate this and gain some valuable knowledge is to ask why they are leaving.   Incorporate a drop down menu with pre-populated reasons as to why they are leaving (i.e. unhappy with service, too costly, no longer need service etc) With that being said, it is helpful to also allow room for them to express in their own words why they are leaving. These details are not only helpful in bettering your products and retention efforts, but they may also win you some customers back.

4. Show your customers you appreciate them

Businesses work hard to provide the right service and products that consumers want, but they often fall short on strategies to retain those customers.  Customer appreciation is key to customer retention. People want to know their business is valued.

Here are a few simple ways to show your valuable customers you appreciate them:

  • Act on any feedback you receive.  Adding new features or services that customers suggest goes a long way.
  • Incentives are great.  Loyalty programs help boost repeat purchases and keep your business at the forefront of their mind
  • Say Thank You. It goes a long way.  Whether in an email or letter.

For more ideas on ways to show your customers appreciation, check out this article:

5. Get granular to find out what types of customers churn.

Not all customers are created equal, so if you can figure out those that have a higher chance of churning, you can shift your focus to customer retention efforts.  As an example,  look into calculating what the customer churn rate is for various advertising mediums or product lines. It may become evident that customers who signed up via a PPC have a higher churn rate than those who reach you through a 3rd party.  With this knowledge, you can then make the appropriate adjustments to where your marketing dollars are going.

In conclusion, churn is the last thing a company wants, but it’s inevitable.  The key is to learn from each lost customer and use that knowledge to better your retention efforts, switch up your offerings and nail your feedback initiatives.