How to Tackle B2B Customer Churn
You know churn is an important metric to monitor, but how can you stop the inevitable? First, you must be confident in your product and service. Then you implement internal processes to address customer issues, get everyone involved in customer retention, identify signs you might be losing a customer, and create follow-up systems to keep in touch. Tackling B2B customer churn requires a company-wide effort.
Implement internal processes
Create internal processes to implement corrections to customer problems. Devise workflows that bring internal teams together to analyze reported problems and develop solutions. The feedback and fixing processes should happen automatically. Most problems aren’t one-offs. When there are formal processes, trends can be identified early, and fixes implemented quickly.
Align data and teams around retention
Smash down data silos and get actionable information into the hands of all team members. The goals, metrics, and KPIs that teams use internally are great for their own performance, but they need to be enhanced with churn goals. All teams should share customer retention goals and work together to achieve them. This keeps all players aligned around a shared purpose – customer retention.
Identify leading indicators
Dig into your churned customer data and look for consistent behavior or demographic information. Look at team member interactions to see if a pattern has developed. Perform follow-up surveys and phone calls to determine the reason for the churn. Was the product no longer needed or was the customer dissatisfied?
When you can identify leading indicators of churn, you can act preemptively to stop churn before it happens. Complaints are like icebergs; they show the tip of a problem. Dig in and determine underlying causes. Then when existing customers show signs they are about to churn, assign your best sales and service team members to their account.
Smooth onboarding processes and order follow-up
First impressions are lasting, and you want all customer experiences to start smoothly. You may never recover from a rocky start. In the first few months of the relationship, focus on customer adoption. Ensure new customers are familiar with your product and various usages. Keep a close eye on open tickets and the time it takes to resolve any problems in these early stages. The first few months are make or break, so ensure sales and support teams check in regularly. After the customer is familiar with the product, then you can pivot your messaging to the perceived value of your product.
Stay in touch
Customers expect to hear from you after they place an order. But what about one month or six months later? Use technology to track customer interactions and to regularly reach out. When customers see you care, even when they aren’t buying, they value the relationship because you value the relationship. Use phone calls, video chats, emails, and social media messaging to periodically check in on customers. You’ll better understand where they are in their business and this information comes in handy when they are ready to buy again.
