This week:
Article: What does it mean to "Buy" churn?
Download the Free eBook: 23 Ways to Reduce Churn in 2023
23 Ways To Reduce Churn: #9 Sell More Paid Services
Quote of the Week: Endless reasons why customers fail but...
What does it mean to "BUY CHURN"?
I often say, "We buy more churn than we make."
Here's what "buying" churn means to me, and what to do about it →
👉 The way we sell is a huge factor in customer churn. 👈
It all comes down to results →
THE 3 LAWS OF CUSTOMER RETENTION:
⓵ Customers stay to get results.
⓶ Customers get results because they change their behavior.
⓷ Customers change their behavior because they know why and how to change.
So, what does this have to do with selling? Here's what happens...
🤑 Lazy selling leads to lazy customers.
🥱 Lazy customers don't change their behavior.
😧 No change means they don't get results.
😵 When customers don't get results, they leave.
Ok, so what is "Lazy Selling"? Here is my quick starting list, but I'm sure you can think of more:
• Relying on DISCOUNTING to close deals
• Allowing customers to have unrealistic EXPECTATIONS
• Giving away onboarding or expert services for FREE
• Not identifying and documenting the customer's key RESULTS
• Not COMMITTING customers to make the essential changes
• Selling to BAD-FIT customers to hit quota
• Not ENGAGING post-sale to ensure customers win
🙋🏽♀️ What else have you seen? What selling practices lead to churn?
🙋🏼♂️ Conversely, what have you seen sales do that sets up customers for success?
HOW DO YOU SOLVE LAZY SELLING?
Engaging productively with sales to inform their practices for driving customer results is essential. Customer Success is in the driver's seat on this one.
Here's the simple method I use to help my clients engage successfully with sales:
✅ Provide sales with a clear and simple framework of the key results new customers should focus on, and how the most successful customers achieve them.
THE CUSTOMER RESULTS FRAMEWORK:
1️⃣ Take the time to study your successful customers and identify the most important RESULTS that new customers should focus on. Ideally, choose just one or two (or at most 3) key results. Simplicity is powerful!
2️⃣ For each result, indicate how the customer will MEASURE the results. Identify the key result metric; if it can't be measured, identify the proxy indicator that will prove it's working.
3️⃣ List all the SOLUTION elements that are essential for good results. Identify which products and services they will need to ensure they achieve their results.
4️⃣ Finally, clearly list what key BEHAVIORS the customer will need to change to win. This is the most important part! Sharing this with prospects demonstrates that we know how to make them successful and prepares them to engage correctly.
It's amazing how effectively these simple steps inform the sales process and align with customer success! I've guided many clients through this process, and the results are astonishing.
Download the Free eBook: 23 Ways to Reduce Churn in 2023
Proven Methods for Rapidly Increasing Customer Retention Backed by Real-World Data
By: Greg Daines, CEO ChurnRX
4 REASONS WHY SELLING PAID SERVICES DRIVES CUSTOMER RETENTION → 23 Ways to Reduce Churn: #9 Sell More Paid Services
📈 Our customer churn research consistently shows that customers who purchase paid services alongside their subscriptions get better results and stay significantly longer.
Also, companies that offer paid services have higher retention rates.
Here are the four reasons that paid lead to better results and longer customer retention:
⓵ Buying paid services signals that the customer has a higher degree of commitment and engagement to start with. These are more serious customers.
⓶ The act of selling paid services improves the quality of the sales process because it forces reps to make a more compelling RESULTS case to justify the investment.
⓷ Selling paid services inevitably leads to teaching prospects about the BEHAVIORS that are essential to achieve good results. This prepares customers to engage with the company correctly and win.
⓸ MOST IMPORTANTLY, paid services almost always directly assist customers to get results more effectively.
QUOTE OF THE WEEK:
There are endless reasons why customers fail, but only a few reasons why they succeed.
