“Blow up” your packaging
Resource constraints early on may have limited you to focusing on just a few customer segments. But your customer base and market have likely evolved since you first launched your product. With more resources and a greater product lineup, your addressable market may have grown.
The old packaging may not land with the new groups you’re trying to reach. This means your offer structure may need a tune-up or an overhaul to better reflect the needs, perceived value and willingness to pay of the new customer segments now in your view.
Even if your original packaging and bundling approaches have worked, consider refining them to better align with your customer base and the addressable market.
Navigate price increases
Your customer base will become your most valuable asset. Perhaps you have a loyal following, but you aren’t charging them enough. Consider whether to raise prices or raise spending. If you’re hesitant, that’s not the only strategy.
“If you created a great relationship with people, generally, there are going to be other things that they want to buy from you as well,” Hartman said. “They want the burger. You could raise the price on the burger, or you could also sell them fries.”
Prevent churn before it becomes a problem
Companies that wait to fight churn until their client leaves have stalled too long.
“It’s a little like tooth decay. If you wait until your tooth hurts, you are going to lose that damn tooth,” Hartman said.
Customers who leave can generally be divided into two groups: Those who do not consider the relationship important and are either frustrated or believe they can get a better deal elsewhere, and those who see your product as vital but have already found a substitute.
“They are already in the arms of someone else,” Hartman said of the second group. Customers in the former, less committed group will probably leave anyway, but the cost of converting the clients in the second group to stay is high.
Customers tend to leave for a few reasons, like disagreement over the value or price you offer, failure to deliver on promises, market conditions, or a competitor making a better offer.
If you know why a client has become risky or what aspect of your business is creating the metaphorical tooth decay, come up with a strategy to fight it, he said.
But there’s a more proactive strategy to fight churn: Recruit customers who most resemble your most loyal customers.
“Look at the people who stayed with you for a few years and apply that look-alike model to acquisition, and you're going to find that those people stay with you,” he said.
Quiz