What Methods Effectively Reduce Churn in Digital Marketing?
Martech Interviews
What Methods Effectively Reduce Churn in Digital Marketing?
In the quest to minimize customer churn, we've gathered insights from seasoned Marketing Directors and Managers, among other professionals. They share six methods ranging from optimizing pricing strategies to varying content across digital channels, offering a comprehensive look at how digital marketing can enhance customer retention.
- Optimize Your Pricing Strategy
- Automate Interest-Based Email Sequences
- Set Up Customer Feedback Loops
- Clearly Set Customer Expectations
- Establish a Clear Onboarding Roadmap
- Vary Content Across Digital Channels
Optimize Your Pricing Strategy
What we've been doing is optimizing our pricing strategies. Getting the price right is key to keeping customers instead of losing them. It's all about striking the right balance between what your product or service is worth and what it costs, in a way that appeals to the people you're trying to reach.
Take companies like Spotify, Zoom, Dropbox, and Trello as examples. They use freemium models, which let people try out the main features without paying anything. This approach draws in users and then gently encourages them to upgrade to paid plans when they see they're getting more value.
To get your pricing right, it's important to do market research and look at what your competitors are doing. This helps you figure out what your customers are willing to pay and how they perceive the value of what you offer. Try out different pricing setups, like having various subscription levels or pay-as-you-go options. This can appeal to a wider range of customer needs and preferences.
Automate Interest-Based Email Sequences
I like to create automated email sequences based upon areas of interest, and gradually increase the depth of the content provided. For instance, I work for Novolyze, a B2B food safety and quality (FSQ) software company, and I will be answering with my current objectives in mind, which may or may not align with yours.
Let's say a lead enters my database by downloading an eBook about Environmental Monitoring (EM), which is one of our solutions. I can set up a workflow to send them, for example, 1) a welcome email, 2) an EM-related blog post, 3) another EM eBook, 4) an in-depth EM white paper, 5) an on-demand EM webinar, 6) an EM course, 7) a full breakdown of our suite of solutions, focusing on EM. (Of course, any sales outreach efforts should be coordinated with this sequence and paced appropriately.)
The increasing depth of the offered content helps prevent stagnation, assuming that they are engaging with the sequence at all. After the sequence, I keep them in the loop with any new developments to keep them warm, while sales continues its efforts based on engagement signals.
Here's the kicker, though... If they don't engage, then you actually want them to churn! Don't try to fight the lead; meet them where they are in their process.
Set Up Customer Feedback Loops
I believe that setting up feedback loops is a really effective way to stop customers from leaving. It's about actively finding out and addressing customer issues before they decide to stop using your service. I make sure to ask for feedback regularly, using surveys, social media, and direct conversations. This gives me a clear idea of what customers like and what they don't.
Using this approach means I can make my products and services better while also showing customers that I care about what they think. It's beneficial for both sides. Take Slack, the messaging app, as an example. They're really dedicated to listening to their users. They ask people to point out any problems and suggest new features, which has helped them keep improving their service and keep their customers happy.
Clearly Set Customer Expectations
A key method I've found effective is clearly setting customer expectations upfront through digital channels. This includes providing detailed product information, pricing, and service commitments on our website, email campaigns, and social media profiles. By transparently communicating what customers can expect from signing up, we reduce the chance of dissatisfaction emerging down the road due to misunderstood expectations. Proactively addressing questions and concerns publicly through digital engagement avenues also reassures customers that we will meet their needs, building trust and lowering churn risk. Delivering on promises completes the cycle of properly framing and meeting expectations.
Establish a Clear Onboarding Roadmap
To reduce churn in digital marketing, establishing a clear onboarding roadmap for new customers is crucial. Exceptional customer service builds trust, fostering long-term commitment, while simplifying user experiences encourages customer retention. Understanding and segmenting the customer base allows for targeted approaches, tailoring strategies to meet specific needs. Constantly monitoring customer engagement in real-time and investing in ongoing customer education solidify a strong foundation for sustained brand loyalty.
Vary Content Across Digital Channels
Mixing up our content on different digital channels works wonders in keeping our clients interested and reducing churn. We make sure to keep things exciting and tailored to each platform, delivering value in the best way possible. This approach not only avoids being repetitive but also makes our content more engaging and enjoyable for our audience.
