As it has become easier for customers to switch subscriptions, it has become more important for you as a company to stand out and remain attractive to both new and existing customers.
When trying to retain more customers, keep in mind that retention conversations should be driven by curiosity, and the goal should not be to convince the customer to remain loyal to your brand.
If your employees focus on listening and understanding why customers are considering leaving, they can work with each customer to find the right solution that is tailored to their needs. If the best solution for the customer is to cancel the subscription, your department may still end up with an ambassador who speaks well of your products and customer service approach.
You will not retain more customers by simply canceling the customer's subscription without showing further interest in the underlying reasons. It is often a better experience for both you and the customer when the employee curiously asks each individual customer why they consider canceling their subscription.
In some organizations, it is as low as 10% of cancelation calls where employees ask about the reason for cancelling the subscription. Fortunately, your employees do not have to ask difficult questions, because often it is enough to ask: "May I ask why you are considering canceling the subscription?" That way, you are laying the groundwork for finding an ideal solution together.
It can quickly become difficult for your staff to get good results if they are not sure what works.
Key levers are the concrete ways in which you can handle validating the customer's subscription details, finding out how the customer uses your product, or presenting offers.
For example, you can increase the likelihood of retention by up to 55% by uncovering the customer's use of the product. You can do this by using phrases such as: "Have you otherwise been happy with the product?" or "May I ask why you are considering canceling?"
You can also use phrases such as: "Actually, I can offer an upgrade of the product that matches your needs at the same price" at the end of the conversation.
It is important that all employees use these levers in the right context.
It will be easier to retain customers once your employees get a clear idea of what works. It also has the advantage that dialogues will be consistent across the entire department.
It will be easier to retain customers once your employees have a clear idea of what works. But once you have an idea of what works, the dialogs can become consistent across the entire department.
Many companies offer either a discount, an upgrade, a technician visit, or another type of subscription.
In most cases, discounts prove to be the best option, but a good rule of thumb is that employees should read customer signals before they choose to adjust the price. This is because discounts should only be offered in the appropriate context and in moderation, so that the customer does not feel persuaded to remain a customer.