CRM (Customer Relationship Management) systems are an important tool for companies to handle any information and data related to their customers. CRM systems makes it easier for companies to handle their churn and decrease their churn rate, something that will improve their performance and results over time.
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What is churn and churn rate?
Churn is an expression you might have heard of before, but what does it really mean? When a current customer to a company decides to stop buying or ends their relationship with a company, it’s called churn or churning. Churn is something that happens to every business sooner or later, no matter what size they are.
Churn rate is the speed of churn during a specific timeframe like for instance from the 1st of January to the 31st of December. It’s important to know your churn and churn rate to better understand the health of your company. A high churn rate is an indicator that customers aren’t happy with your company, which might lead to loss of business and revenue. By better understanding what affects a company’s churn and churn rate, it’ll be easier to create a great customer experience that improves the customer relations of time.
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5 things that affect your churn rate
Centralize customer data with CRM
One of the biggest benefits of having a CRM system is that it makes it possible to handle all customer data in one database. For instance, instead of having your customer information spread out in one system and your marketing information in another, you’ll be able to handle it all directly in your CRM system instead. With a 360-degree overview of customers, it’ll be easier to gain insight into customers’ needs, how they interact with your company, what problems they might have and gather feedback from them. By having one central source of information, it’ll be easier to see if there’s any ways to improve the customer experience and lower your churn and churn rate.
Get more accurate communication
With a CRM system companies can in an easy way segment their customer base depending on criteria such as previous purchases, turnover at the company or for example geographical location of the customers. By segmenting customer you’ll be able to create and send more relevant information and campaigns to the different segmentations. For instance, why send an offer for desks to a customer that just bought a desk? Wouldn’t it be better to send an offer about office chairs or addons for the desk to the customer instead? With this type of customer segmentation, you’ll be able to see which customers haven’t made a purchase lately or who’s lowered their turnover at your company. By identifying these kind of customer signals, you’ll be able to see which customer might be on their way to stop buying from your company and churn as a result.
CRM makes it easy to communicate with customers
Having effective customer communication is an important part of being able to keep your customers from churning. Lime CRM gives companies the ability to be more effective in their customer communication by helping with things such as e-mail campaigns, newsletters or keeping track of important customers. It helps companies to send out the right message at the right time to their customers such as onboarding e-mails, updates about products or personal campaigns. This type of relevant communication can help keep customer engaged in companies’ products and what they do, which helps reduce churn.
A simplified administration and sales process
With a CRM system in place, it’ll be easier to handle administrative tasks such as customer deals, offers or handling of orders. You can see when a contract is about to expire and renew it, send out detailed offers with the help of a CPQ or handle other business systems with the help of integrations and add-ons to the CRM. By centralizing handling of customer information, you avoid working in multiple systems all at the same time. A CRM system provides the sales department with all the information they need to be able to handle customers in the best way possible and lower churn rates. Being able to handle customer information directly while being in a call, see what interactions the customers has had previously with the company or sending out customer surveys to collect feedback, are all valuable tools that can be used to improve the customer experience. Nothing will be forgotten, and the customer will feel more appreciated!
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Take decision based on data
Most CRM systems have built-in functions for creating reports and doing data analysis. By using custom reports and Business Intelligence tools, you can gain valuable insights into the customers behaviors and use the information to take decision based on the data you see. By using a CRM system for data analysis of customers behavior it makes it easier to anticipate their needs and wants. As an example, you’ll be able to identify which customers have a higher risk of churning and can be proactive by trying to reverse the trend before it’s too late. You can also follow your churn rate over time to see if the actions you take to reduce churn is making a difference or not.
Why not also use the data to find opportunities for upsales to current customers? By analyzing your customer data you’ll be able to use your CRM system to identify which customers might be interested in other products or services from your company. Be proactive and contact the customers with an offer they can’t refuse! The better you’re able to predict the customers needs, the easier it’ll be to keep them as customers at your company and not churn to a competitor.
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Let Lime CRM help you
The benefits of having a CRM system for your company to reduce your churn and churn rates aren’t hard to see. By centralizing your data, improving the way you communicate with your customers and creating the blueprint for better internal handling of customer data and interactions, it makes it easy to create a world-class customer experience that help you reduce your churn. A CRM system provides companies with the tools needed to identify problems ahead of time and work proactively with reducing their churn.
If you want to become more successful in today’s tough business climate you need to think about your churn, it’s not something that can be ignored. Use Lime CRM to gain better customer insights, build better customer relations and create a world-class customer experience, all things that can generate more revenue over time.
Let us show you what Lime CRM can do to reduce your churn