Too often, customers are underwhelmed, ignored, or made to feel unappreciated, all of which leads to a disappointing experience that has them looking elsewhere. So it’s unsurprising that customer churn continues to be one of the biggest problems faced by a majority of businesses.
This challenge is even more prominent in an age when people are used to being courted and cared for, increasingly expecting seamless, exceptional, personalized services, and will gladly shop around for and give their money to those that can.
In other words, customers have no problems churning until they find they right fit.
One of the most effective ways to combat churn is to forge authentic and personal relationships with your customers. Not only does this continually build up and strengthen what will amount to a lifelong loyalty, but in the rare case of poor service, your customers may give you the benefit of the doubt instead of immediately migrating to your competitor.
As video has gained in marketing influence, it’s become clear that it has a unique power to boost the retention and loyalty you need to break the dreaded churn cycle. Before we get into how video excels at doing this, let’s unpack the concept of churn a bit more to give us a good grounding upon which to build a better strategy.
As the world churns
Broadly speaking, customer churn is the customers you lose. Customer churn also goes by terms such as customer attrition, customer turnover, and customer defection – regardless of moniker, however, it always refers to the net percentage of customers you lose over the course of a selected time frame (say, monthly or yearly) compared to those you retain.
Given that it measures those customers who won’t be returning, churn has a critical relationship to repeat business. So the most glaring drawback of customer attrition is that it directly cuts into your revenue. The higher your customer churn rate, the faster your revenue shrinks. And if left unchecked, customer churn will result in your business losing money instead of making money – which makes churn management essential.
Customers often churn when they encounter roadblocks or have difficulty finding success with your product, services, or tools. Whether spending too much time looking for a specific piece of information or running up against user accessibility issues, any whiff of obstacle or delay will have customers second-guessing their decision to invest time and money in your company.
That’s why offering a comprehensive self-service knowledge base – FAQs, for example, or even better, a series of easy-to-understand explainer videos tailored to a customer’s individual needs and their unique customer journey – can disentangle stuck users, helping them reach their goals, while helping you keep more customers for the long haul.
Don’t churn a blind eye: how video reduces churn
Digital-savvy consumers are increasingly reticent to engage with traditional marketing tactics felt to be impersonal and generic. So part of a marketer’s job now is to know how to craft and deliver engaging content that resonates authentically with their audience – and reduces churn.
There are several customer retention strategies and best practices you can implement to prevent customer churn, and at the top of that list is interactive personalized video (IPV).
IPV lets you integrate customer data directly into video content to personalize the message so that it speaks to them directly and addresses their concerns in an engaging format, all at scale. And it is the twinning of these two powerful variables – personalization and visual information – that sets IPV apart from less effective churn-reduction solutions.
Personalization. Communications personalization via video is, by far, one of the best ways to make online relationships feel more human. IPV platforms like IndiVideo create content tailored to individual customers, and a customer who feels that they are being heard and their needs met will engage more and churn less.
Visual information. Video’s superpower is that it can inform and delight at the same time, letting people quickly learn something in an engaging way and often visual way; in fact, 40 percent of learners respond better to visual information than text alone. Video is better poised to accomplish this than, say, a spreadsheet or a static image. By incorporating information that directly addresses customers and visually engages them, you are directly increasing the retention that stops churn in its tracks.
Part of making that authentic connection that is critical to reducing churn is by delivering your customers the messages they prefer to hear – personalized, engaging – on a channel they prefer to use – video.
Churn the tide: beating the odds with IPV
Factors contributing to churn can occur at any point in the customer journey, from the initial purchase to onboarding, from adoption to escalation and renewal. There is no point that is immune to churn, and that’s why marketers need digital solutions that can strengthen the entire journey, and preferably a singular, easy-to-use, trans-media option like IPV that harnesses the power of both personalization and video, simultaneously.
With IPV, you can target the exact point in a customer’s journey causing churn to continuously optimize their experience. For example, with an automated system in place to notify you when a customer is at risk of losing attention, platforms like IndiVideo let you quickly personalize, create and deliver an engaging video that happily keeps them in your funnel.
Ultimately, the equation for success is relatively simply: by increasing retention, IPV lowers churn, which lets you scale up operations and revenue. And IndiVideo is designed to help marketers do exactly this: take easy-to-implement steps at all churn-risk junctures and deliver the kinds of messaging – authentic, personalized, engaging – that keeps customers on the path of their lifelong journey with you.
Want to find out how IndiVideo can help you retain more customers and reduce churn? Reach out for a free demo.
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