May 2, 2022

Reduce Your Sales Churn With These 7 Strategies

When it comes to marketing, having the right ideas is great, but actually getting your customers to buy from you is even better. This article gives seven specific ways that you can reduce your sales churn, which will increase the amount of product and customer loyalty you have.


As marketers, we often hear about the importance of having a consistent flow of leads and sales. 

Without that consistent stream, it can be harder to track when your sales are going well or not so well. That's why this article is a great read for those looking to increase their number of qualified leads and reduce their sales churn.

What Is Customer Churn?

Churn on a sales team is when a customer cancels their contract. Sometimes it's because the customer found a better deal elsewhere and sometimes it's just because they're not happy with the product or service they received. 

The goal for any company who enjoys high retention rates is to reduce churn as much as possible over time. When a customer cancels their contract after getting a bunch of value from your product, it means that you have likely failed to provide enough value to the customer.

To reduce churn, you need to provide a reason for your customers to stay with you. This means that you must be able to prove that your product, service or company is better than the alternative. 

You can use a great deal of different techniques, but at the end of the day, the core marketing theory is to convince your customers that you provide more value than your competitors.

Picture from tedmag

Why Is Customer Churn Rate Important?

Customer churn is not only a problem predicted by every business, it's actually happening. If a customer has too much trouble with your product and they decide to switch companies or leave the market altogether, it doesn't really matter how loyal you think you are. 

That customer will just become another statistic when it comes to your company's churn rate. Even though you may have the best product or service in the world, if customers do not trust your company, it will become a liability for your company. You can lose a customer before you even get started with them.

There are many ways to predict which customers will churn, but one of the easiest ways is by looking at their churn rate. The more people that leave your business, the more money you are losing in revenue every year.

The problem is that when someone leaves your business, you lose that customer's contact information. You don't know if they will come back, and if they do, what could it cost you to get them back? The life of a customer is very short in the grand scheme of things. 

They only have so many chances to buy from your company before they stop purchasing from you altogether. The more loyal customers you have who continue to purchase your products and services every month, the less likely it is that any one of them will eventually stop.

To have a successful business, you have to have loyal and consistent customers who continue to purchase your products every month. The problem is that once they stop purchasing from you, it can be very difficult to get them back.

If someone decides to leave your business, it could cost you thousands of dollars in lost income and growing frustration as the months go by until you finally find out why this customer left.

7 Ways To Reduce Customer Churn

Customer churn is one of the most significant determinants of the success or failure of your company. It costs money, time, and resources to acquire new customers and it greatly diminishes the profitability if you can't retain them. Here are 7 strategies to reduce sales churn.

1. Cut your sales cycle time- In order to decrease your sales cycle time and make a better return on your customer's investment, you need to understand the key drivers that affect the customer journey. 

This means understanding how they interact with people through various touchpoints. In order to decrease your sales cycle time and make a better return on your customer's investment, you need to understand the key drivers that affect the customer journey. This means understanding how they interact with people through various touchpoints.

2. Stop losing talented sales people- Salespeople are important. They often make the difference between a profitable or unprofitable business. 

If you're losing your best salespeople, it is important to take steps to prevent churn before it happens. One way to avoid churn is to offer compelling incentives and rewards. Another way is to continually deliver positive customer experiences with personalized service.

3. Limit customer contact to high value customers- One of the many ways that companies can reduce their customer churn rate is by limiting contact with low value customers to high value customers. 

In a recent study, it was found that only 6% of the customer contacts were actually with people who were likely to churn. This means that 94% of the interactions were with people who were less likely to churn. 

By reducing this number, companies can improve their profitability and sales growth.  The channel team should make use of its online channels to reduce the number of customer contacts. 

By separating the decrease in sales from the increase in customer churn, the channel team will be able to measure its impact on customer churn.

4. Add revenues to your sales cycle time- One way to reduce sales churn is to focus on the revenue cycle. By adding extra steps to your sales cycle, you can increase your chances of making a sale and decreasing your chance of making a sale. 

One way to do this is by including products that cross many departments in their sales cycle.   For example, consider a scenario where you sell products that are sold by both your customer and the distributor.  

This could be an extremely long sales cycle as the customer may have to talk to your distribution team about delivery, logistics, and inventory before you even get a chance to talk to your customer.  

Adding the products of one department to the other would significantly shorten the sales cycle and reduce churn.

5. Emphasize the connection between revenue and retention- There are various ways for you to make your customer feel like they've been understood, loved, and valued. 

It is the responsibility of the sales force to make sure that their customers leave with a feeling of value. A way to do this is by spending time in person with them, listening to their stories, and not treating them as names on a spreadsheet. 

Another way is by providing personalized training so that they know what makes your business better than any other industry or company they may be considering.

6. Get feedback on your product page- To reduce your sales churn rate, make sure that your product pages are giving the right information. 

They should be clear and concise, so it's easy for consumers to understand exactly what they are buying. It's also important to provide more details about shipping, returns, and warranties so that the consumer understands their options. 

Just be sure to offer as much information as possible, especially so that consumers can get the most out of their purchase.

7. Get new customers by matching them with existing ones- If you're struggling with your sales churn rate, it's possible for you to start a campaign of getting new customers through existing ones. 

This is also an excellent way to get more leads by appealing to current customers. When you find out what the specific challenges are that customers are facing as well as their pain points, you can use this information to design a campaign that they would be interested in pursuing.   

For instance, your customers are having trouble with paying their invoices so you can design a campaign to send out more emails and make sure that your customer's invoices are submitted properly. 

You can also decide to create an incentive program by offering freebies or discounts to those who sign up for your business email blast.

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Shubham Sharma

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