How To Avoid Customer Churn with Exit Survey
What companies are the most prosperous ones?
The ones that deliver excellent customer service!
Studies consistently show that businesses that provide poor customer service lose customers and have lower profits.
When a customer leaves you, it is called customer churn or customer attrition and that’s the worst thing that can happen to a company.
By getting a better understanding of why your customers are leaving, you can identify the root cause as to why your customers are leaving you.
Start by asking your former customers a set of useful customer churn questions.But do you know why decisions are being made?
• Why did my prospect choose another competitor?
• Why did a user not progress in the onboarding process?
• Why did a customer decide to leave?
When you can answer these questions above, you can solve business problems as:
– Are your prices too high?
– Has there been an unresolved complaint?
– Your competitor offered a better deal?
– Defining your product roadmap
• Increasing engagements that lead to revenue
• Eventually, reduce churn
Your churn rate tells you how quickly your customers are leaving. You want this number to be low. You can always target a 0% goal, but, let’s get serious: that never happens.
When you attract customers but can’t keep them, that’s because they are unhappy with your business. So you need to be smooth when you approach your customers with your survey. It is a good idea to write a polite e-mail and ask nicely if they are willing to take their time to respond to your survey.
Make sure you estimate how long time the survey will take; a shorter time means a better response rate.
The questions to ask about could be:
– why did you make this purchase?
– what is the main reason you decided to discontinue your collaboration with us?
– what information was missing when you made the purchase
– what other products would you like to see to complement this purchase?
– was our range of products/services broad or deep enough?
– was the quality of your product/service good enough?
– product development
– are you aware of our new [Feature Name] feature that allows you to do
[Insert Feature Benefit]?
– have you recommended our brand to anyone?
– before this purchase, what other providers did you consider?
– how responsive have we been to your requests
– customer service or support service
– prices of your product/services
– how likely are you to purchase our products again?
You could also provide a box where the customer can elaborate, but most people won’t do so; they are happy to give a low rating without giving further details.
End your survey by asking if your customer wants to leave any other feedback, comments or concern.
By keeping in touch with your former customers, you show them that you care for them and if you improve your product or service, they might very well consider coming back to you again.
Customer surveys are part of the Customer Commitment part of the 4 part strategy about Customer retention.
To learn more about the rest of the strategy, click here.