No matter how good your business is, customers come and go. However, you want to gain more customers than you lose at any given time.
The rate at which you lose those customers relative to the number of customers you acquire is what we call customer attrition.
You can calculate your business’s churn rate as churn rate = (number of lost customers) â (total number of customers). This simple formula gives you a powerful clue as to whether you are keeping or losing customers. Beyond that, it lets you know how satisfied your customers are with the quality of the services or products you provide.
You need to be proactive in retaining your customers, because reducing your customer churn rate early on is an easier problem to solve than winning back customers retroactively.
How to improve your customer churn rate with performance marketing
One of the ways to help reduce customer churn is through performance marketing. Performance marketing is a catch-all term for performance-based marketing. Although the term only applied to marketing tactics where an advertiser pays exclusively when measurable results are achieved, it is now considered a combination of paid advertising and branded marketing. So how do you use performance marketing to lower your churn rate and increase customer retention?
Acquire an ideal audience
The very first step in making sure you’re using performance marketing tactics to lower your churn rate is targeting your ideal customer.
Even if you’ve created the most useful product or service, chances are it is only extraordinarily useful and applicable to a specific subset of the population, not everyone.
To ensure you attract and acquire ideal clients who will continue to engage with your business – and, hopefully, even become brand ambassadors one day – it’s your job to properly advertise your business. to the target audience that you can help the most.
Now if someone outside of your target audience is buying, that’s great! But to keep your churn rate low, you’ll want to attract customers who so desperately need your product or service to solve their problem that they keep coming back.
How do you practically do it in your marketing tactics?
1. Adjust your PPC ads so that they show up to the right audience.
When you serve ads on social media platforms like Facebook or Instagram, you have the flexibility to not only tailor your ad copy to your ideal customer, but also adjust the ad settings so that you don’t spend money. money only to display your ads to super relevant potential. customers.
Don’t skimp on adjusting your demographics when serving ads. Typically, you have the option of targeting based on:
- Job title
- Hobbies and hobbies
- Past behavior and purchases
- Using the device
- And more
In addition to social media ads, you have the option of using search engine ads. Google AdWords is the most popular search engine marketing tool available today. It uses keywords to show ads to people searching for content on Google.
When a user searches for keywords related to your ads, pages and ads embedded with those keyword phrases appear at the top of search results.
So, in these cases, using search engine optimization (or SEO) techniques and including keywords in your ad copy and results page gives you the opportunity to connect with customers directly. potentials who are looking for exactly what you have to offer!
2. Post sponsored content on highly relevant and reputable websites.
The main advantage of sponsored articles is the great possibility of attracting customers with long term buying behavior. Not only does sponsored content drive significant traffic to your products and services, it also increases your brand’s visibility within specific audience groups that are right for you.
When you are able to post long articles about your product, you are providing your audience with a detailed description of the products your business offers. As a result, customers and clients come to your product with a deeper understanding of their needs as well as the solutions you offer.
This means that they have been educated, fed and ready to buy. So just make sure you post this content on very relevant and reputable websites.
There are many publishers with low quality content and traffic. By posting on high-quality sites in a niche that is similar or adjacent to your business, you will attract people who are more likely to be interested in your offers and more satisfied customers in the long run.
Feed new prospects
Once you’ve acquired a new customer, the best way to get them to buy over and over again is 1. to have an amazing product (but we think you already have it!), So step 2. is the email marketing.
Sending consistent communication via email keeps your brands in mind for the customer. It also gives you the chance to connect with your audience on an emotional level, introduce them more to your brand’s values ââand personality, as well as educate them about your product and its weak points!
That is why we recommend:
1. Sending a welcome series to new customers (and subscribers)
Subscribers who receive welcome emails are, on average, 33% more engaged with your brand. Most customers expect to hear from you immediately after joining your mailing list. And it makes sense why you should! When customers sign up, the intention is there. They say, “Hey, I’d love to engage with your brand and hear what you have to say.” That is why you should always send a welcome series to new customers and subscribers to take full advantage of this perfect opportunity that has been offered to you.
2. Sending a series of post-purchase emails
The second sequence of emails we recommend is a post-purchase flow. You can use these emails to:
- Explain how to use your product or service
- Share other customer stories to get your new customer excited about the upcoming transformation if they stay with you
- Remind them to rearrange!
- Get a review for your website
- Offer a discount code on their second purchase
Now is the perfect time to convert that new customer into a loyal customer. This will help you lower your churn rate, and the size (and value) of repeat customer orders tends to increase over time.
3. Obtain information from customers through surveys
One of the best things you can do for your business is to understand your audience. You can do this through customer surveys sent by email. Ask questions like:
- What brought you to [insert company name]?
- How can we improve your experience with [insert product name]?
- Multiple choice: Which of the following categories would you like to know more about?
- What was the biggest challenge with [insert product name]?
- Is there anything else you would like us to know? (If your customer has any complaints, chances are they’ll tell you.)
Use this information to understand how you can better serve your customers and avoid customer attrition.
These polls are only beneficial if you take the feedback (don’t take it personally, trust us!) And put it into practice. You will end up creating a better overall user experience.
4. Maximize your email personalization capabilities
These days, personalization of emails means more than a name in your subject line. While you should refer to your subscribers by first name (sparingly and where appropriate), it’s also helpful to personalize your emails based on how your reader has interacted with your website, the products they have. purchased and how they answered your survey questions. . Even something as simple as emailing your subscriber on their birthday can go a long way in building a relationship and trust.
So, you have acquired a new customerâ¦ It is definitely worth celebrating! But, after you’ve earned the trust of a new customer enough to buy, it’s time to maintain that relationship to prevent customer churn. By finding the right leads during the initial advertising, and then nurturing them through a number of possible means, including email marketing tactics, you can better avoid customer turnover. What performance marketing tactics will you start to apply to lower your churn rate this week?