Avoiding customer churn: How to secure repeat business for your brand as the pandemic continues
Wednesday, October 28, 2020
As a marketer, you know how it's felt to lose customers during COVID-19. Customer churn, the phenomenon of consumer turnover due to economic concerns, is rampant throughout today's marketing landscape. Data from Search Engine Watch found that, since the pandemic began, 46% of surveyed marketers report they have lost customers, and just 12% of those surveyed report they were able to gain new customers during the quarantine.
How does a brand start to combat customer churn? First, it's key to break down exactly how the phenomenon happens. SuperOffice defines a brand's "churn rate" as the number of consumers who desert your products and services within a given period of time. Trying to attract these consumers to what you have to offer and keeping them interested enough to keep purchasing from you can be a very expensive proposition. Your best bet is to avoid customer churn in the first place. And it can be done!
Here are five key steps marketers should take to keep buyers interested, satisfied and secure during the pandemic — and preserve their loyalty after COVID-19.
1. Start by analyzing your weaker business time frames.
According to data from ProfitWell, growth for the company was steady at 2.5% in January 2020 and 1.9% in February 2020, but flatlined in mid-March, descending to approximately 0.12%. Use this same general idea when it comes to evaluating your own churn from the start of the pandemic to now.
Look for patterns in terms of the periods in which you started to lose business and at what percentage. Conversely, look at when you began to see growth again, if applicable. Once you've determined how your customer movement patterns, you can start to evaluate the strengths of the products you have been offering.
2. Take a good, hard look at your product range.
Determine the factors that may have gone into any slide in your brand's interest level outside of COVID-19. Did you launch any new items that didn't hit? Did you discontinue services that your base really loved, thereby disappointing them when you didn't need to?
Try to pinpoint any shifts that may have caused some change in your demographic and see whether replacing or restoring items might be the simple fix you need.
3. Survey your audience members regarding their new spending philosophy.
Ask your loyal customers via your platforms what their concerns are regarding purchases during the pandemic. You can find out if you need to lower your prices temporarily or long-term. Also, clearly capture how your base may have a new conservative outlook when it comes to spending disposable income on your goods and services.
4. Adjust your content and ad copy to reflect new needs.
Once you've determined what changes you may need to make in terms of product specs and pricing, be bold when conveying them to your consumer outreach approach. Customized and personalized messaging outside your overall campaigns is a fantastic way to make an impact in this regard. Outline the positive changes you've made as often as possible — this will reassure your base, and they will want to stick with you.
5. Monitor and manage your progress.
Make sure you're on top of customer churn in the current climate and for the future. Do plenty of market research. Keep your eye on your competitors' campaigns. Make sure product quality and supply chain continuity are your priority.
Shore up supplies in your brick-and-mortar outlets — don't just focus on online sales. Survey your demographic early and often. Make it your business to read the tea leaves consistently so you can head off exiting consumers and attract new customers at the same time.
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