The churn rate is the percentage of customers who have stopped using your product or service within a given time period. In a perfect world your churn rate would be at 0%, but this is very seldom the case.
In a perfect world your churn rate would be at 0%
One very smart way in improving your churn rate is asking your customers why they have made the decision to use a different product or service. I have read about a lot of approaches to reduce the churn rate starting from improving your service and educational materials to re-evaluate your marketing. In short it’s just about ensuring that your customers continue to realize value from your service. If you know why your customers are unhappy with you, then you are fine and can get started, but in most cases you will never know what to improve if you do not ask your customers for feedback… and send them a churn survey.
Talk to Customers
Unfortunately sending a churn survey means, that your customer is already unhappy with you and decided to discontinue the collaboration with you. If you want to act before it is to late it always is a good idea to run customer surveys to identify “at-risk” customers. These are customers who still use your license, but are very close to cancel it. Through customer surveys, the customers’ needs and satisfaction can be examined before they’ve even canceled. This provides a basis for further work within the organization. Alright but let’s see now what you can do to find out what the customers reasons are for canceling.
Send a Churn Survey
While there are many discussions about how high or low a churn rate should be, we focus in this post on the first step. Get started in talking to your customers by providing a template for an easy churn survey.
Introduction Text for Churn surveys
If you were following our magazine a while you may have stumbled on a post from Sakarias Fasth, where he wrote about motivating people to answer your surveys. Never forget that you want something from your customer and not the other way around. The customer has made the decision to stop working with you for some reason. That means, that you would have to convince them to give you feedback about their reasoning. Ask them short and very nicely if they would have the time to answer your churn survey and tell them that their opinion is important to you.
A while ago you decided to not continue working with [YOUR BUSINESS]. As we are always striving to improve our products and services, we would greatly appreciate you taking the time to answer a few short questions.
The survey takes a maximum of three (3) minutes to complete.
Your feedback is important to us.
We thank you in advance for your feedback. We wish you the best of luck in your future endeavors and hope that we will have the opportunity in the future to have you as a customer again.
Last but not least it will increase your response rate if you tell the respondents how long it will take to answer your survey. The shorter the time and survey the better the response rate will be.
Sample Questions for a Churn Survey
1. What was the main reason you decided to discontinue your collaboration with [Your Business]?
- We didn’t use the product/service enough
- We have decided to work with another provider
By providing the customer with options, you make it easier for them to make the right choices and to respond in the fastest way. Start with an easy question even if you want to know the details right a way. We will ask them about them later. First you want to know the main reason and if they might have chosen an another provider. It might be a mix a several factors that made them to cancel.
Now, lets get into the details and let your customer tell you what part of your company or which interaction might have been responsible for their decision.
2. How influential was each of the following areas in your decision to discontinue your collaboration with us?
- Our range of products/services
- Our product/service quality
- Our product development
- Our support service
- Features of our tool
- Experienced poor service from us
- Our price
- Your contact person at [Your Business]
Now that you made it easy to get to know the reason you should ask for exactly why and if they want to give some other feedback or concerns. Most people will likely not tell you that. However, the customer came this far in telling you their thoughts, that they might not answer to the question, but you might get closer in order to call them up again and find a solution to make them stay or come back. Maybe you were just on holidays, when they called you for support or the server was down. They might understand you better and give you another chance. If not, it is your time to make decisions and start improving your product, service or business structure.
3. Do you have other feedback, comments, or concerns that you want to convey to us?
Getting back in touch with your customer will give them the feeling that you care for them and they might recommend you or come even back to you later. Now that you have identified what the problem was, it it is time for improvements. Listen closely to your customers need and provide the right value. Use this free churn survey template and even start conducting customers surveys on a regular basis in your business in order to get the customers’ feedback.
Download Churn Survey Template
Download the churn survey template with sample questions to improve your churn rate for free. You have to be registered to gain access to the template. It is completely free and contains even more samples and ways to get the right results. Netigate customers can use and import this churn survey template directly from the question library.
Thank you for joining us here again in this article. We want to make it as easy to get in and learn and apply the ideas as we can, so if you have any requests or feedback, please contact us or leave a comment on this page.
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