Strategies for Reducing Churn During a Recession
Maximize Customer Engagement and Keep Your Business Growing
As we are all aware, economic downturns can significantly impact businesses. In such times, customers may be more likely to cancel their subscriptions due to cost concerns and perceptions of value.
This makes reducing customer churn even more critical for companies to ensure the stability and growth of their business.
To combat this issue, startups can follow a few tips to reduce customer churn and keep their customers engaged:
Identify Potential Issues Early: Startups can track daily active user (DAU) and monthly active user (MAU) data to identify potential issues and disengagement early. This will give you a better understanding of which accounts are at risk of disengagement and need attention.
Create Opportunities for Conversation: For accounts at risk of disengagement, startups can create opportunities for conversation through in-person sessions or feedback forms. This will give them a chance to understand the customer's concerns and work towards resolving them.
Justify the Cost: If cost is a concern for the customer, startups should help their customers understand the value and benefits of their solution to justify the expense. By highlighting the advantages of their solution, startups can ensure that their customers continue to see the value in their products.
Convey Value Better: In addition to direct customer interactions, startups can address churn issues by revising their product pages' elements to convey value better. This includes reinforcing the value proposition with customer success stories and case studies.
To see examples of companies implementing these tips, check out the following examples:
Stripe Marketplace Solution (establishes credibility with client logos + benefits + case studies)
Stripe tells us about the different ways they have helped their clients
Mailchimp (customer value is the first thing listed + links to use the tools right away)
Mailchimp defines the value proposition right away and entices prospects to get started
Miro (emphasizes benefit right away + client logos + customer stories + number of users)
Miro highlights the number of users and assets in the platform to help justify the cost
Buffer (1 value proposition + links to get started right away based feature + customer feedback + link to help center)
Buffer creates opportunities of conversation with their clients and prospects
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