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Create a theme for the form by choosing the appropriate color scheme. Change the style and color of the text. Add photos and YouTube videos to the form. To do this, insert additional code into the required tag.

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<Img
img="/uploads/Warning_Signs_of_Customer_Drop_Off_from_Your_Digital_Service_627573a970.jpg"
alt="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.

Well, before we proceed, let’s have a quick look at three [**statistics**](https://smallbiztrends.com/2016/10/customer-retention-statistics.html):

- 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

Customer satisfaction directly impacts customer engagement. However, do not mistake [**customer engagement**](https://growave.io/blog/customer-engagement/) for activity. While you should be on the lookout for decreased platform activity or action for regular purchasers, the way of engagement varies for customers at different stages.

If your regular customers have turned into [**loyal customers**](customer-trust), their reduced engagement may reflect in their unwillingness to try out new products or features. If you’re lucky enough to have [**evangelist customers**](https://www.marketing-schools.org/types-of-marketing/evangelism-marketing/), they may show their dissatisfaction by reducing voluntary promotion or referral activities for your brand.

### 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.

Moreover, not everyone voices their concern directly. Customers may be talking negatively about you on social media or giving you lower ratings. Activate [**social listening**](https://sproutsocial.com/social-listening/) to always be in the loop on the web.

### 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.

If you see lower [**conversion rates**](conversion-funnel-stages-and-optimization) than usual on your promotional offers and incentives, customers might be losing faith in your brand. And they don’t even want to indulge in profitable sales. Negative experiences induce such extreme actions, which discourage them from purchasing, even at a reduced price.

### 5. Unresponsiveness to Emails

When shoppers feel less connected and less loyal to your brand, their social interactions drop. Your email marketing metrics can reflect the signs of [**customer churn**](https://www.gravysolutions.io/post/2021-ultimate-customer-churn-rate-prediction-and-involuntary-churn-guide). You’re not going to get 100% open rates. However, if customers who have a history of opening your email most of the time are not doing so anymore, it is a sign of reduced customer engagement.

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

Customer loyalty programs keep your company top of mind, your customers engaged and regularly informed on deals catered to their interest. [**Customer loyalty programs**](/features/loyalty-programs) should always be an even exchange of quality for data. A customer should be providing you with their email in exchange for:

- Personalized promotion codes
- Engagements on social media channels
- Emails that only pertain to specific engagements.

If you want to learn more about how to retain customers with loyalty programs, read this [**article**](customer-loyalty-program).

## 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!

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.

large_Warning Signs of Customer Drop Off from Your Digital Service.jpg

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Warning Signs of Customer Drop Off from Your Digital Service.jpg

Customers do not drop off instantly in most cases. They, unintentionally, give subtle signs that voice their concern or dissatisfaction. 

5 Warning Signs Your Digital Service May Lose Customers

Warning Signs of Customer Drop Off from Your Digital Service

<Img
img="/uploads/blog_6538062d62.jpg"
alt="What is a customer loyalty program and how to create it"
/>

Once a marketer has enticed prospective clients to use their products or services, their marketing mission immediately turns to ensuring these same customers will return. A satisfying user experience is essential to making that happen.

One strategy, an effective loyalty program, has proven infallible in bringing customers back, even for decades, after that initial purchase.

Quality, value, and customer satisfaction will always be the fundamental drivers of consumer decisions. But airlines, hotels, car rentals, banks, coffee shops, grocery and drug stores, restaurants, credit card companies, and most other businesses today rely on loyalty programs to [**retain**](customer-trust) their client base.

## What are Loyalty Programs and Loyalty Marketing?

Loyalty programs, sponsored by retailers and other businesses, usually consist of rewards, discounts, freebies, or other incentives to entice buyers to come back to buy future products or services.

While loyalty programs of some type have been around for centuries, these have become more prevalent, sophisticated, and far-reaching in recent years. More miles or overnight stays, more money spent, and more frequent purchases often mean free goods or services, money back, or other powerful incentives to maintain [**loyalty**](customer-loyalty).

Customer loyalty programs not only retain more customers for future purchases, but these clients are more likely to try new products. And, on average, these consumers will spend 31% more than first-time buyers.

In any instance, the lure of a free airline flight, hotel stay, prizes, gifts, and discounts earned with a certain number of purchases becomes an irresistible draw that comes them coming back.

<Img
img="/uploads/customer_loyalty_b5ca658567.jpg"
alt="Customer loyalty"
/>

## How to Create an Effective Loyalty Program

If you have not already implemented a loyalty program, creating one can be a low-cost, high-return strategy to lock in and grow your client base.

Businesses spend five times more to attract a new client than to keep existing ones. Increasing customer retention by just 5% can create a 25% to 90% increase in profitability, depending on the starting point.

So, how does a new or existing company go about creating an effective loyalty program?

**Excellent products and services** are the first and most crucial element of a successful loyalty program. A loyalty program cannot even begin to capture the consumer’s interest unless what you offer addresses the fundamental reasons why they came to you in the first place.

**Stay Consistent** with your products and communications. One bad experience can damage the relationship permanently since the possibility of future bad experiences becomes a deterrent to returning.

**Focus on the customer.**  Be sure you understand their needs and continually determine whether your products or services are meeting them.

**Do more than what is expected.** Whenever possible, add something extra to prove your commitment to the customer.

**Reward customer loyalty.** Design your program to offer meaningful rewards.

**Make the Rewards Program available** for all interactions, both in-person and online.

**Create Status Levels.** Airlines, among others, do a great job of rewarding Frequent Fliers with status levels that offer preferred seating, upgrade possibilities, boarding preferences, lounge availability, and more.  Similarly, wineries reward their exclusive Club Members (those who spend more) with direct access to the more exclusive wines, complimentary wine tastings and winery tours, and further recognition while visiting the winery.

**Surprise and delight customers.** Awarding customers when they may not be expecting anything is a great way to solidify a relationship. A birthday gift, for example, can be a warm, personal way to reward them. For example, Altcraft platform allows you to [**personalize emails**](/features/personalization) and wish every customer a happy birthday by sending a promo code.

**Offer first opportunity to buy new offerings.** As you introduce new products, an introductory offer to your Loyalty Program participants is a way to show them that they are preferred.

**Be Creative** when naming the program and even your rewards points.

<Img
img="/uploads/Leading_factors_disliked_about_loyalty_programs_bd1d27b935.jpg"
alt="Digital customer loyalty punch card"
/>

## Types of Loyalty Programs

Types of loyalty programs vary depending on the products offered. These may include:

- **Points**

While programs have different requirements, some offer a single point for each dollar spent during a specified period. In some instances, points should never expire. However, setting a time limit may encourage more frequent visits. While a weekly visit to a grocery store can be a natural frequency, airlines do not expect their less-than-elite customers to fly as often. So, their rewards “miles” may never expire.

One of the most popular point programs is Sephora’s Beauty Insider rewards program. Customers earn points for each purchase they make: 1 point for every dollar spent. When there are enough points, they can exchange points for limited cosmetics.

<Img
img="/uploads/sephora_beauty_insider_feb7957ea0.png"
alt="Sephora’s Beauty Insider rewards program"
src="Sephora’s Beauty Insider rewards program"
/>

- **Cashback Programs**

When customers spend a certain amount of money, they may be rewarded with coupons or cash to be used at the issuer’s business. Bank credit cards also offer cashback awards that can be redeemed as credits on balances, deposits to checking or savings, or purchase items at specified retailers.

- **Punch Card Programs**

Each time a customer purchases, one or more holes of their customer loyalty cards get punched. When the card is “fully punched,” the customer receives a free item. This is if we’re dealing with paper cards. When it comes to digital punch cards, they exist within a mobile app, but the idea is the same.

<Img
img="/uploads/mccage_digital_customer_loyalty_punch_card_70d2e8faf9.png"
alt="Digital customer loyalty punch card"
src="Digital customer loyalty punch card at McCafe"
/>

- **Promo Codes**

Promo codes to loyal customers can enhance your relationship with prospective and current customers. These may be personally directed or general and can be presented through multiple platforms.

In [**Altcraft Marketing**](/en) automation platform, it is convenient to generate personal promotional codes: set up your own marketing automation workflow and decide at what moment you want to give your loyal customer a [**promo code**](/features/loyalty-programs).

<Img
img="/uploads/gamification_of_activity_image_en_52c917855a.jpg"
alt="Leading factors disliked about loyalty programs"
src="Promo code workflow sample"
/>

- **Partner Programs**

These programs involve earning “points” at more than one business to be used at any of the participating companies.

## Conclusion

An intense focus on customer care will benefit your company in very significant ways. Satisfied customers will relay their positive experiences to friends, thereby creating new business and will positively represent your brand to others. An effective loyalty program is an integral part of customer care.




Customer loyalty programs help you attract new customers and keep existing ones. Read about the types of loyalty programs and learn how to create your own. 

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Businesses spend five times more to attract a new client than to keep existing ones. Increasing customer retention by just 5% can create a 25% to 90% increase in profitability.

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