Recurring revenue businesses rely heavily on customer retention. It is tempting to focus all efforts on recruitment, but churning customers is a real concern for growing businesses.
Understanding and monitoring customer experience, can help to identify early warning signs, put in measures and reduce churn. By improving the customer experience, you can increase customer retention and revenue per customer, whilst also enhancing brand perceptions in the marketplace. By getting this process right, you create ‘fans’ of your business, ‘advocates’ who freely recommend your services to others and buy frequently from you.
In order to measure customer experience, you must first identify relevant KPIs. What are the measures in your business of customer satisfaction? Many companies use NPS (Net Promoter Score) which gives an overall satisfaction score. You ask the question: How likely are you to recommend us? You use an answer scale of one to ten. You may also want to ask more granular questions to understand satisfaction across each customer touch point.
Next think about what influences the satisfaction score. This can often be obtained through a comments box on your survey, or by calling a cross-section of clients to ask specific questions about their experience. Having the right products, at the right price, on the right management portals, is key, combined with excellent service and accurately and timely billing.
By surveying customers regularly and gathering feedback, you can identify any shortcomings and work with customers to improve them. Going the extra mile to fix a problem can save a churning customer, and when handled well, also turn them into an advocate.
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