BY Jessica Helinski
The business world has changed dramatically for sellers and buyers. As we move on from the disruptive events of the past two years, the shift in thought is going from “survive” to “thrive.” Salespeople are focusing on how to keep clients happy as new trends, buyer personas, preferences, and economic conditions emerge. Client churn should be top of mind.
Not keeping clients satisfied can have major impact. As OroCommerce points out, “The cost of disappointing a customer is high to…over 51% of B2B customers with a poor experience will avoid your brand. More importantly, only one in 26 unhappy customers is going to complain. The other 25 will simply churn.”
Sellers are also reporting a growing struggle with churn, as SalesFuel found that some sellers say overcoming client churn is getting harder.
Client churn should be a focal point for sellers
“Retention is the new growth, writes Jonathan Costet, Gong’s senior growth marketing manager. He recently shared five churn-reducing strategies, three of which are discussed below:
- Confirm the “economic” buyer and establish credibility
- Understand buyers’ roles and interests
- Update your client segments
Confirm the “economic” buyer and establish credibility
As major shifts have occurred in the business world, your contact at a company may have shifted roles. Or the decision-maker has changed. Sellers need to be aware of who now wields the authority to keep paying for your product or service. Make sure that you’ve identified who is currently the “economic buyer” at each client’s company, and that you establish credibility with anyone new. “Credibility is the bedrock of selling power,” Costet explains. You can do this equipping them "to better predict, plan for, and forecast the future.” Once you've demonstrated value and credibility, you’ll add even more security your relationship and mitigate client churn.
Understand buyers’ roles and interests
As mentioned, shifts have taken place and will continue, especially as economic conditions change. Make sure that you keep up on what your clients want now, which may vary from what they wanted when they first bought from you.
Reducing client churn is about prevention, and by proactively adjusting your process to shifted needs, you’re getting ahead of a potential cancellation.
“The key to this tip is the right now,” he writes. “Acknowledge what is happening in their world at the moment instead of just going through the usual chatter or straight into sales motions.”
Check SalesFuel’s tips for writing a “just checking in” email that will get opened—and answered.
Update your client segments
Now is the time to reanalyze your client segments to determine who presents opportunity for expansion and who is at risk. But COVID-19 has impacted this aspect of reducing churn. “In a COVID-world, it’s essential to add a third layer of segmentation: Understanding what impact the pandemic has had on each renewal company’s business,” Costet writes.
Look at your current client base in light of what impact the pandemic may have had on them. Your clients are experiencing both opportunities and challenges in their industry following COVID-19’s emergence, which in turn affects how likely they may be to cancel.
One way to do this, he writes, is to “fit customers into three buckets: negatively affected, neutrally affected, and positively affected. You then focus your renewal energy on customers who are primed for growth with your organization AND neutrally or positively affected by COVID-19.”
Being proactive is key to reducing client churn
Once again, being proactive is key to cutting future losses. Costet’s tips can help salespeople act now to reduce churn rates and nurture relationships for future growth. For even more retention advice, check out past articles from SalesFuel.
Photo by RODNAE Productions