No matter what type of business you run, acquiring new customers is tough. It’s even harder to keep those customers around. If you’re running a saas or recurring business, retaining customers becomes even more important.
It’s a real problem and every business faces it.
Here are the top 10 reasons customers quit you and how you can fix them.
1. You made a bad first impression.
We live in an online world where first impressions matter. It can make or break your long-term relationship with your customers. In 2018, customers now expect and demand top-notch experiences when they interact with brands. Whether they are a long-time customer or they are just signing up for your free trial.
IDEAS TO IMPROVE: Depending on the type of business you run you have to consider all of the “touch points” a potential customer may experience. For example, if you run a saas company you may consider the following.
- Marketing campaigns. Does the messaging stay consistent from the campaigns to the landing pages? If not, customers won’t even consider taking the next step.
- Sign up process. Less is more. Consider removing some fields in the forms. Again, if you’re offering a free trial, asking for too much up front can make potential customers feel like it’s “too much” to get going.
- Onboarding flow. This is a big one to think about. In our opinion, this can make or break your customer’s first experience with your product. Make sure you’re providing enough context to the user and don’t assume they know exactly what’s going on or what to do next.
- Customer support. Another important touch point that can sway a customer either way. Audit your processes with your support team and ensure the experience is top-notch.
2. You treat all your customers the same.
Let’s be honest. We’ve all done it. We’ve all treated our customers the same one way or another. You’ve email blasted your entire base the same message. You’ve run the same discount to every potential customer through your marketing campaigns. You send the same ‘thank you’ email to every, single customer. It happens.
The problem? We believe you don’t have the right tools to understand all of your customers.
IDEAS TO IMPROVE: Here are some quick ideas on how to help you avoid this common yet costly mistake.
- Google Analytics. Majority of businesses use analytics to track their users. With that being said, the majority of users only look at the vanity stats. (e.g. visits, pageviews, pages per visit, etc.). Dig a little deeper into the demographics, understand your top pages with highest bounce rate, etc.
- Try Weav. 😉 Shameless plug, we know but give it try. Weav provides a new way to do ecommerce marketing. It’s free to sign up and we’re confident you’ll be happy you did.
- Do things that don’t scale. Above all else, sometimes you have to do things that aren’t easy. Take time to dig through all of your orders every day. Do some “recon” on your customers to start to understand where they are coming from, what their interests are, where they hang out, etc. It will pay dividends on your entire offering and help segment your marketing efforts.
3. You’re giving your customer’s email list burn-out.
Raise your hand if you unsubscribed from an email in the last week? We can’t see your hands but we’re guessing it’s a lot. 😉
We agree the power of email marketing is still one of the best marketing mediums. The problem is, you can easily overdo it if you’re not careful. This point #3 ties closely with point #2 above where you have to understand how to segment your users with each campaign.
IDEAS TO IMPROVE: Try these out and do it quickly to make sure you don’t lose those precious email subscribers.
- Segmentation. There are a million ways to segment your email lists. Start with the basics (e.g. have purchased vs. not purchased) and slowly move into more advanced methods that work for your particular product or service.
- Create a schedule. No matter how small or big your company is, creating a content focused schedule can help keep track of what to do next. There are paid apps like CoSchedule or just create your own google sheet to keep track.
- Be authentic. Put yourself in your customer’s shoes. Would you want to get these emails? Are they valuable? Talk to your customers in a real genuine way, just like you’d talk to anyone you know.
4. You tried to bait and switch.
First off, if you do this, just stop. It’s annoying and you deserve to have your customers quit on you. This point shouldn’t even be on this list but unfortunately, we see this happening a lot.
IDEAS TO STOP DOING THIS. ASAP: Again, don’t do this. Capeesh?
- Pricing. Be upfront with your pricing. Don’t get too fancy with your pricing plans, term lengths, etc. Show the total clearly in your cart. Again, why should we even have to make this point?
- Marketing gimmicks. There’s really no need to try to trick someone into using your product or service. Even when you do get the sale, they’ll come right back for a refund and then immediately tell all of their friends to not use your product or service.
5. Your customer service is led by policy vs intuition.
Out of all the items on the list, this is one we have a lot of passion behind. Let us explain what we mean by policy vs. intuition.
Customer service is unique at every company. As companies scale, they find new processes to keep supporting their customers. Depending on the core values of the company, the way they continue treating their customers differs.
Policy-driven support teams are by the book. It’s black and white and there’s no moving them from their position. The process was created for the “ideal” scenarios and no matter how bad the company screwed up or frustrated the customer is, the policy is the policy. In this case, the policy is first and the customer is last.
Intuitively driven support teams operate on instinct. There is a defined policy in place similar to a policy led team. However, the teams are able to operate on a case by case basis. Every customer’s situation is unique and this gives them the ability to keep the customer first. Again, keep in mind, there is a policy but if you have an upset customer who clearly isn’t worth the time, a quick refund and “Have a nice day” will go a long way.
6. You’re thinking short-term vs. long-term.
We get it, you’re trying to boost revenues, hit monthly goals or whatever the case may be. The problem is a lot of times when you get into this mindset you start to shift to only thinking short-term. When you’re ONLY focused on just making the sale, your churn will go through the roof.
IDEAS TO IMPROVE: Here are a few pointers to get you thinking long-term.
- New sale, now what? Try to think about what would make your customers have an even better experience. Once the sale is made, what else can you do to leave a lasting impression on your customers?
- Communication. After the sale, talk to your customers. Keep them engaged. Ask for feedback, reviews, how they liked their purchase. Anything.
7. Your refund policy isn’t working.
Don’t get us wrong, in today’s world customers jump to Twitter and blast you for a refund. A lot of times it isn’t warranted. With that being said, it’s a good idea to periodically re-evaluate your refund policy.
If you’re handing out refunds left and right, that’s obviously bad business. However, just like the point we made earlier about a “policy-driven support team”, you can leave a bad taste in a customer’s mouth if you’re not up to speed on why customers are asking for refunds.
IDEAS TO IMPROVE: Try these ideas to improve your refund policy.
- Reverse Engineer Refund Requests. Take a step back and try to understand why customers are requesting refunds. Is there a flaw in your product? Was there confusion about your pricing? Does your product have bugs? Seek to understand “the why” and fix those issues ASAP.
- Exchanges vs. Refund. Have you ever thought of an exchange policy as the “first line of defense” for refunds? Exchanges policies are a great way to treat your customers well but not take a drop in revenue.
- Don’t be afraid to Refund. Just because you’re giving away a refund today, doesn’t mean the customer won’t come back later. Think about where you shop today. When a company offers a no questions asked, hassle-free refund policy you’re more than willing to come back later and buy because you know what to expect. Again, thinking long-term vs. short-term.
8. You’re not segmenting your customers.
Beyond just segmenting your email lists, you can segment throughout your landing pages, your products, sign up flows, etc. The more targeted you can get with your customers, the higher the conversion rate. Making your time and money spent worth even more.
IDEAS TO IMPROVE: Give these segmentation tips a try.
- Landing page segmentation. There are two ways you can segment your landing pages. Take your homepage for example. Have you ever tried split the page into two and giving a few options for customer’s to go down? Additionally, you can segment your marketing traffic to targeted landing pages based on where they are coming from.
- New users vs existing users. This should be an on-going item in your backlog. Make sure you’re carving out time to focus on both your new and existing customers. Their experiences need to be catered to them because they are clearly different.
9. You don’t offer a loyalty program.
Time and time again, there’s a new offer or deal to try a product or service. They work too. Potential customers love getting a deal when they are about to buy from a brand. But what about your existing customers who have already paid you?
A loyalty program doesn’t work for every brand out there but if you have customers utilizing your product or service monthly or annually, it’s important to consider how to reward them for their loyalty.
IDEAS TO IMPROVE: Reward your loyal customers and keep them for years to come.
- Offer a discount or coupon code. Depending on what type of product or service you’re offering you can give customers a number of incentives to make them feel appreciated. For the example we’ve been using (a saas company) you could offer them a month free after being with you for 12 months or longer. Just as a way to say thanks.
- Utilize a loyalty software. There are a lot of different loyalty software around. Depending on your business, you’ll have the choose the best one for you but this is a great way to get something up and running quickly.
- A simple thank you. Believe it or not, a simple ‘thank you’ note goes a long way. Customers just want to feel valued and recognized. BONUS: If you’re a Weav customer, you can do that with a click of a button. 😉
10. You’re taking your customers for granted.
Last but not least, if you’re not thankful to have all the customers you do have you’ll easily lose them. It’s just common sense but as companies grow, they forget what it was like to only have a few hundred customers. Treat the new and existing the same and take the time that is required to keep your customers happy.
IDEAS TO IMPROVE: Final tips to avoid your customers from quitting you. 😉
- Relationship building. Understand that in any sale or transaction, it requires a relationship between you and the customer. Keep in mind how invested you are in your relationships with your customers.
- Engage with your customers. Every post comment, Instagram comment, Facebook comment, Twitter mention, etc. take time to respond. It means the world to your customers and it takes only a second of your time (or less with tools like Weav, and others). And let’s be honest, you’re not that big of a deal.
- Stay consistent. As you’re working on growing your business, as sales increase and as you onboard new customers remember that you typically hear more from the angry customers. The squeaky wheels. All of your other customers you don’t hear from are most likely happy. Keep your head down, stay consistent and stick to the basics every day.
So there you have it. Our top 10 reasons on why customers quit you. Bottom line is, stay focused on the touch points of your entire customer experience and you should be just fine. Best of luck! 😉