Warning Signs of Customer Drop Off from Your Digital Service

A substantial chunk of our sales and marketing strategies focuses on increasing the quality website traffic of your business website and getting a consistent batch of new customers. Sounds fair, right? After all, you need to keep expanding your customer base to increase your revenue and earn profits.
- 65 percent of the revenue of a business comes from its existing customer base.
- 80 percent of your future revenue will come from just 20 percent of your current customers.
- The cherry on the cake — it costs five to eight times more to acquire a customer than it does to keep the existing ones.
Do you recognize what these data reflect?
While developing strategies and attracting new customers is vital for the health of your business, it’s equally important to hold onto the ones that you’ve already got. Not only are they easier and affordable to keep, but they generate more revenue for your business too.
However, a large percentage of businesses do not make customer retention a priority, not at least from the beginning. It is why it goes on to become a serious boardroom concern. The challenge enhances when you address the fact that customers are now less forgiving — one-third of consumers switch companies after just one poor customer service experience. It sounds scary, doesn’t it?
However, customers do not drop off instantly in most cases. They, unintentionally, give subtle signs that voice their concern or dissatisfaction. If you look close enough, you can manage to recognize those warning signs in their buying behavior. You can then go into your crisis mode and take immediate corrective measures to win your customers back.
In this blog, we are listing the top five early warning signs that can tell you you’re about to lose your customer so that you can increase your customer retention rate. Here we go.
Top 5 Churn Indicators
1. Decline in Engagement
2. Change in Usage Patterns
A decline in platform or app usage indicates that customers are not getting what they need, and they are likely to drop off. Tracking KPIs, such as site abandonment rate, lapsed payments, and activity time, can help you recognize churn right before time.
For example, in your cloud storage SaaS model, if your customer begins using 500 gigabytes from a sudden drop of one terabyte of storage, you need to worry.
3. Increase in Complaints
You should be thankful for the customers who complain. For every one person who raises help tickets, there are at least two that do not. They just quietly leave without showing signs of churn. Therefore, take every complaint seriously. If there is a sudden increase in customer complaints, you should be on high alert.
4. Disinterest in Incentives
Who doesn’t like availing of the benefits of a sale, discount, or special offers? We’ve got one group - customers who are planning to unsubscribe.
5. Unresponsiveness to Emails
You need to adopt marketing practices that give people reasons to not unsubscribe. You can change your email marketing strategy and include content that may resonate more with your audience.
When you are armed with the ideal knowledge, you can quickly recognize the at-risk customers through these warning signs. It can protect your business from losing vital customer accounts. As a bonus, here is a quick tip on being proactive about reducing customer churn.
Utilizing Customer Loyalty Programs Before Churn Rates Rise
- Personalized promotion codes
- Engagements on social media channels
- Emails that only pertain to specific engagements.
Conclusion
To scale up to the next business goal, you cannot afford to lose customers. To prevent customer churn, be proactive and work through the aforementioned methods to turn customer wins into loyalty. Keep reducing churn rate and increasing customer retention at the top of your priority list. It will make your business more profitable for the years to come!
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