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Need To Reduce Customer Churn? Explore These 6 Simple Tips

11 December, 2023 3 min read
Need To Reduce Customer Churn? Explore These 6 Simple Tips

It is indeed a fortunate situation for any business when their customers continue to utilize their products or services for a long time. It indicates that they stand tall on customer expectations and are on the path of exponential growth. However, it is not easy to achieve higher customer retention.

There are multiple competitors in every industry, so the customer obviously gets to choose after comparing the price or quality offered by a business. So, even a slight compromise with production or marketing can lead to a higher churn rate for a business. Let us dig deeper and understand what churn rate is and how to reduce customer churn to run a successful business.

What is the Customer Churn Rate?

The churn rate is the percentage of customers who stopped using your products or services in a given period. If you check how many customers discontinued your services in the past three months and divide it by the total number of consumers, you can calculate the churn rate.

The Churn Rate Formula

So, if 100 customers churned in the last three months and you had a total of 1000 customers, your churn rate would be 10%.

Churn Rate: (Customers lost in period / Total customers at the beginning of the period) * 100

Tips To Reduce Churn Rate and Increase Customer Retention

The lower the churn rate, the higher your customer retention rate will be. Hence, you can use the tips listed below to reduce customer churn and experience exponential business growth.

1. Learn About Your Audience

If you study customer behavior carefully, you can determine who will likely churn. Check the purchase patterns and see which customer has started indulging less. This way, you will learn the potential churns and can strategize to keep them indulging with your products. Try offering them a unique discount or plan other tactics to eliminate their chances of moving to another brand. Reach out to them through emails, SMS, or another mode to make them feel valued and give them reasons to keep sticking to your business.

2. Keep Active Communication

Always remember, out of sight is out of mind! If your customers don’t hear from you for months, they will forget about you. Especially when there are multiple options in every industry, your customers will not even miss you! So, it is crucial to keep active communication with your consumers. You can try different social media platforms where your target audience follows you. Keep posting relevant content on these social media platforms to ensure your customers hear from you every day! This way, you will stay right in front of their eyes, and the chances of them turning away will reduce.

3. Incentives Can Work

Who wouldn’t like some additional perks along with the purchase? Or a surprise price drop just when they plan to buy something? This strategy works best to reduce customer churn. The best way to give incentives is to curate them strategically. Keep track of customer data and learn about important dates like birthdays and anniversaries. Automate the emails to congratulate the valuable customers and offer them a surprise incentive to celebrate their day. It will push them towards making a new purchase. Moreover, it will help strengthen their bond with the brand as they feel acknowledged and valued.

4. Ask For Feedback

Another tip to reduce the churn rate is to keep your customers involved. Be all ears and ask them for their feedback. Let your customers speak about their experience with your brand and use it constructively. Make sure to plan a few changes based on your customer reviews, as it will make them feel involved. It is fair to say that involvement works best to reduce the churning rate.

5. Study your Churn Effectively

Keep track of your customer churn by measuring it frequently. This way, you can learn the patterns and take productive actions on time. If you see your churn rate increasing significantly in the past many months, there is something you should change with immediate effect. So, keep track of these reports with the help of customer success platforms like ZapScale and study them frequently to push your business toward growth.

6. Strong Customer Support

Customer support is an indispensable part of business growth. Hence, ensure you provide your customers with satisfactory support to increase your retention rate. Hire qualified professionals in your customer support team and train them to work with a vision to offer instant and satisfactory solutions to every consumer.


Understand that retaining your existing customers is equally significant to gaining new ones. So, make sure you put in the required effort to ensure most of your already existing buyers stick with you. With these simple yet effective tips, you can align the tasks and see visible improvement in your customer retention rate. Keep measuring the rate frequently to get an assurance that your efforts are working in the right direction and enjoy the exponential growth in your business.


Author profile image
Shivam Kharwal

Shivam Kharwal is the Content Head at ZapScale. He has over 5 years of experience in building brand identity and online presence through the creation and distribution of multimedia content online.

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