Customer loss is an unwanted reality in any business, whether B2C or B2B.
However, even if customers love your product or service, there's no guarantee they'll stay indefinitely.
Customers can leave for a variety of reasons, including price differences, unresolved complaints, poor service, competitors offering better value, etc. Reactivating former customers with the right customer retention strategies can significantly improve your bottom line.
By using customer feedback, you can gather real insights about your customers that will help you retain them and win back lost customers.
What is customer feedback and why is it important?
Customer feedback is information provided by customers about country b2b b2c email list whether they are satisfied or dissatisfied with a product or service and their overall experience with a company.
Customer feedback can help you improve the customer experience and tailor your actions to their needs.
Various types of surveys such as Survey Pop-Ups are used to collect this information (Solicited Feedback).
Here are the reasons why customer feedback is essential:
Customer feedback helps improve products and services.
Customer feedback allows you to assess customer satisfaction.
Collecting feedback from customers shows that you value their opinions.
Customer feedback helps you provide the best possible customer experience.
Customer feedback helps increase customer retention.
Why Customer Loss Is Bad For Your Business
You might be asking yourself, “Why bother going out of my way to retain customers when I can just get new ones?” Doesn’t it all come together in the end? Not completely.
Increasing customer retention rates by 5% has been shown to increase profits by 25-95%. It is easier, cheaper, and safer to focus on retaining existing customers rather than constantly investing in attracting new ones.
For starters, customer churn is even more expensive.
Acquiring a new customer is five times more expensive than keeping an existing one. However, it costs not only money but also time, effort and resources.
Customer feedback churn rate formula.
Returning customers are loyal to your brand, which means they are more willing to invest more in products and services on an ongoing basis. It also benefits your overall reputation – satisfied customers are likely to recommend your company and leave positive reviews.
On the other hand, dissatisfied customers may spread negative comments or reviews. Therefore, it is necessary to work on customer feedback and close the feedback loop .
Customers who stay with you demonstrate their overall satisfaction and brand loyalty.
On the other hand, departing customers can provide you with information about the negative factors that caused them to leave. This information will be useful for customer retention.
Let's explore some common reasons for customer churn.
Reasons for customer loss
Before you focus on winning back your customers, you first need to know why customers churn.
These are the top four reasons why customers churn:
Bad customer service
There is not enough value
Poor quality communications.
No brand loyalty
Ways to recover lost customers
We've created a list of measures to try. After all, churn doesn't always mean that the business relationship has failed. Instead, it can be considered temporarily inactive. Essentially, you're extending the customer journey.
1. Find out why they left in the first place.
The first and most critical step is to determine why your customers stopped buying from you.
Getting to the bottom of the issues will help you choose the best course of action and whether each customer can re-engage or not. This is easily accomplished by asking for customer feedback through surveys.
For example, your customer churn survey might include questions like:
What made you decide to become our client?
What was your favorite aspect of working with our brand/product/service?
What made you decide to leave our company?
What brand have you chosen to serve you?
What prompted you to select our competitor?
What can we do to regain their trust?
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Even if it's not worth the effort to try to win back a particular customer, these surveys can provide valuable insight into where your company, product, or service fell short of customer expectations and how you can retain other customers.
For example, if you find that most of those who left did so because your product is missing some critical features for your target audience, you may want to reconsider your product roadmap.
