Why Your Brand Must Reduce Churn 


For most advertisers, the 80/20 rule is practically etched in stone: 80% of your revenue will be produced by 20% of your customers. The best customers are repeat customers who continue to support your company. 

Though many advertisers know this, the actual data tells a completely different story. According to the Nielsen Marketing Report, marketers prioritize new customers and brand awareness over old customers. When study participants were asked to rank marketing objectives, finding new customers was ranked first, with 41% of participants listing it as the top priority

While new customers are always a necessity, should they be preferred over your existing, already proven customers? We don’t think so. According to researchers, it costs five times more to acquire a new customer than to retain current ones. 

For a thriving business, you need client retention. And for great client retention, you must reduce unnecessary churn. Let’s look at a few ways you can stoke customer loyalty and increase retention. 

1. Enroll Your Customers in a Loyalty Program 

A points-based customer loyalty program is one of the best ways to reduce churn in your business. Incentivize your customers by designing a program that rewards points for purchases, referrals, writing reviews, subscribing to your newsletters, and following your brand on social media. 

The idea is to embed your customers into your brand by involving them as much as possible. These points can add up to discounts and even free products. This works because customers tend to love gamification and prizes, and this keeps highly interested in your brand. 

See Also: How to Use the WooCommerce Points and Rewards Plugin to Increase Repeat Purchases

2. Interact with Customers on Social Media 

72% of consumers say that social media helps them stay more engaged and connected with brands. If you’re not leveraging social media to remain at top of your customers’ minds, it’s time you start. Platforms like Facebook, Instagram, and Twitter give you the opportunity to respond to customer complaints and questions. Positive interactions with your brand will have staying power, and shoppers will be able to associate your brand as one that actually cares for its customers. 

You can spark brand loyalty by incentivizing your customers to share, like, and promote your brand on social media. As we suggested in our first point, you can provide points for social interaction, giving your customers the chance to earn discounts, free products, and free shipping. 

Social media engagement is something many brands neglect, but it’s something that you can use to increase customer retention. 

3. Leverage Email Marketing 

If you want to encourage repeat purchases, your email list is your best asset. Though your customers are likely to be bombarded with emails from a ton of sources, email is still a very effective marketing channel, and it’s one of the best ways to re-engage with your existing clients. 

Send out newsletters with engaging content, “Thank You” emails, surprise deals and discounts, and you’ll be able to spark brand loyalty. 

Churn is the enemy of a successful business. Follow these tips to reduce churn and encourage repeat purchases.

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Joseph Riviello

Joseph L. Riviello is the CEO and Founder of Zen Agency. Joe's agency builds websites and web applications that attract, engage, and convert. Joe has over 30 years of experience in entrepreneurship and he is an expert digital marketing strategist who specializes in conversion-centric e-commerce experiences and cutting-edge solutions that maximize growth and profit. Check out Joe featured on: Business.com, Redbooth.com, Kabbage.com, MaterialDesignBlog.com

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