Having consulted for a number of different companies, I can’t remember the last time where retention wasn’t one of the top two priorities. In trying to keep this applicable to other sectors as well as gaming / gambling, I’ve listed some steps below for improving customer retention.
While there’s no guarantee that customer cancellation processes will prevent customers from clicking the “cancel” button, retaining current subscribers still offers a less expensive way for companies to acquire sales as opposed to brand new lead generation. Why? Because current subscribers are already familiar with your offerings, prices, and other value-adds, and they don’t require the same resources and amount of time as new leads typically do.
Here we’ll take a look at how subscription-based service providers can help reduce their attrition rates and re-engage current customers.
Step 1. Uncover the Reasons for their cancellation
Have a system in place for customer cancellations. Once a cancellation is initiated, there should be a customer touch-point triggered. Consider exit surveys and cancellation emails for these touch-points. In them, inquire about what aspects of the service caused them to make their decision. Try creating a list of 3-7 reasons why customers may have cancelled their services.
The list may look something like this:
- What aspects of your service did you like the most?
- Which aspects of the services did you like the least?
- What made you initially choose our service?
- What new service provider, if any, have you decided to use?
- Would you ever consider using our services again?
- What could we have done to keep you here?
- Would you recommend us to your friends?
Also, consider setting up cancellation email campaigns, which include 2-3 automated follow-up emails once a customer has cancelled. These can be personalised emails which come directly from the company’s owner or CEO, or data-gathering emails to inquire more about the customer’s experience while using your services. Be sure to keep the emails short and to the point. Try mentioning incentives or using funny subject lines to increase your email open rates.
Step 2. Provide them with a solution to their cancellation reason
Once you’ve narrowed down the main reasons that your customers have cancelled their services, create solutions to counter this. This could mean offering discounted or competitor-matched pricing for a specific time period, adding additional services to their subscriptions, or offering free service upgrades where customers can test out more benefits. Most of the time you’ll find that customers cancel services for 3-4 main reasons.
Take an in-depth look at these reasons and consider new ways to prevent them.
Step 3. Don’t write them off just because they cancel
Customers can always change their mind and tend to be somewhat promiscuous in a competitive market with lots of choice, and their circumstances can always change. They can find new value in your services or become dissatisfied with their new service provider. It’s important to continue to reach out to them even after they cancel their services with your company. Unless they’ve specified that they no longer want to be contacted by your business, keep reaching out to them via email, social media, and/or direct mail if possible.
Decide on an appropriate outreach frequency for cancelled customers, continue to provide value and useful information, even if it’s not directly related to your specific services.
Understanding why your customers cancel is crucial to reducing your attrition rates. Stay one step ahead of potential cancellations by finding ways to increase brand loyalty and value. Preventing customer cancellations can often be a matter of simply creating consistent value.
