4 ms·

This article is true for any business with paying customers. A great way to see how you can reduce customer churn and increase customer loyalty is actually ask

by avelis 12y ago

This article is true for any business with paying customers. A great way to see how you can reduce customer churn and increase customer loyalty is actually asking if your customers would recommend your business to a friend or colleague. Since word of mouth is very valuable, knowing where you rank on a scale of 0-10 can be insightful in understanding how to improve your business. One system to manage such engagement is called Net Promoter Score (http://en.wikipedia.org/wiki/Net_Promoter http://en.wikipedia.org/wiki/Net_Promoter). Note: I work for Promoter.io which provides a service to do this.

thibaut_barrere 12y ago
I think you are kind of firing a promotion bullet for nothing here: you should definitely explain what NPS stands for, otherwise you're losing people.
- avelis 12y ago
  Yes, you are right. I wish the article had more ways to tackle reducing churn. I know one way is to engage your customers to see if they would actually recommend your business to friends/colleague's. I amended my comment to better explain my position.
  - thibaut_barrere 12y ago
    My favorite way is to measure my customer's engagement then work at increasing it.
- ckeck 12y ago
  The primary issue with churn is that there are few reliable ways to get a picture of accounts that are likely to churn. We're starting to see better data driven options (at least with online services) by watching user behavior which can really help, but one of the best ways continues to be proactively engaging customers with a meaningful metric. NPS (Net Promoter) is generally looked at through the lens of driving growth by understanding who your most loyal customers are, why, and encouraging recommendations/referrals. The other major benefit when instituted properly (regular quarterly engagements for most subscription services) is the early warning you get from detractors who have a very high likelihood of churning within a 90 day period, if not sooner. Nothing tends to be more accurate than a customer self-selecting and letting you know they are either having a bad experience or they don't understand the product, not seeing the value, etc. Unfortunately a lot of companies/services optimize for churn at the point of cancelation which is way too late. You've got to interact and engage those at-risk accounts ahead of time. Using tools like NPS (properly of course) along with some key behavioral metrics and the commitment to have meaningful conversations with those accounts can have a drastic impact on churn in most organizations. We've seen it first-hand. With regards to the article...couldn't agree more. Never enough focus on churn it seems.

by avelis 12y ago

thibaut_barrere 12y ago

I think you are kind of firing a promotion bullet for nothing here: you should definitely explain what NPS stands for, otherwise you're losing people.

avelis 12y ago
Yes, you are right. I wish the article had more ways to tackle reducing churn. I know one way is to engage your customers to see if they would actually recommend your business to friends/colleague's. I amended my comment to better explain my position.
- thibaut_barrere 12y ago
  My favorite way is to measure my customer's engagement then work at increasing it.
ckeck 12y ago
The primary issue with churn is that there are few reliable ways to get a picture of accounts that are likely to churn. We're starting to see better data driven options (at least with online services) by watching user behavior which can really help, but one of the best ways continues to be proactively engaging customers with a meaningful metric. NPS (Net Promoter) is generally looked at through the lens of driving growth by understanding who your most loyal customers are, why, and encouraging recommendations/referrals. The other major benefit when instituted properly (regular quarterly engagements for most subscription services) is the early warning you get from detractors who have a very high likelihood of churning within a 90 day period, if not sooner. Nothing tends to be more accurate than a customer self-selecting and letting you know they are either having a bad experience or they don't understand the product, not seeing the value, etc. Unfortunately a lot of companies/services optimize for churn at the point of cancelation which is way too late. You've got to interact and engage those at-risk accounts ahead of time. Using tools like NPS (properly of course) along with some key behavioral metrics and the commitment to have meaningful conversations with those accounts can have a drastic impact on churn in most organizations. We've seen it first-hand. With regards to the article...couldn't agree more. Never enough focus on churn it seems.