📉 Understanding the Churn Rate
Churn rate shows how many customers are leaving your agency after they signed up.
High churn rate = Red Alert 🚨. Low churn rate = Happy Dance 🕺💃.
Understanding churn and how to reduce it is important for all businesses but it’s mission-critical for agencies.
Here’s what you need to do if you’re tackling churn:
Understanding why customers churn is more than just asking them –
it’s about analyzing and interpreting their behavior and feedback. Often, clients may claim they’re leaving due to price, but that’s usually a surface-level response.
For example, an agency might lose a client who complains about pricing. But dig deeper, and you might find what the real issue is expecting. The price only becomes an issue when the perceived value doesn’t match the cost.
Use client feedback, analyze performance metrics, and maybe even conduct exit interviews to get to the real root of the problem.
✅ Enhance Client Experience
Simplifying the customer journey and making it enjoyable will decrease churn.
For agencies, keeping clients engaged goes beyond the initial sale. Let’s say a client feels left in the dark after signing up for your marketing services.
A structured onboarding process, complete with regular updates and scheduled check-ins, will keep them engaged while you’re kicking things off.
Clear communication is critical for any agency/client relationship, but early on communication is even more
important. Write into your SOPs to have more frequent outreach so that the client can see they’re in good hands and are getting what they paid for.
✅ Leverage Personalization
Creating personalized experiences can make clients feel valued and understood, nobody wants to feel like they’re on an assembly line (even if they are)!
Let’s say if you’re working with a plumbing client who is looking to expand their local reach, don’t just hand over a standard marketing plan. Dive into the local plumbing trends, understand their unique services & strengths, and tailor your strategies to align with their specific community presence and goals.
This way, you’re not just talking plumbing; you’re speaking their language, connecting to their business, and showing that you’re invested in their long-term success. It’s a tailored approach that resonates with trust and loyalty.
Data-driven insights can pinpoint what’s causing increased churn.
Agencies must dig deeper to understand client churn. Try to focus on specific metrics like client stick rate, sentiment scores, Net Promoter Scores (NPS) for deeper insight for such behavior.
Don’t wait until they’re leaving to do these things, you need to integrate it starting on Day 1. At IPPC, our client dashboard includes two columns for performance and sentiment.
Performance is easy to track and matters…a lot. But performance alone doesn’t let you know how the client feels about the longer-term relationship. So be sure to ask and track!
My business partner Justin has a few things to say about churn…
🤖 Join Us for a Game-Changing AI Session!
Get ready for an epic session diving deep into the world of AI on Thursday, August 24th at 11 am CST. Led by our tech-savvy stars, Alex Schlinsky and Brian Downard.