19 July 2022 Comments Off on How to Stop Cancellations In Their Tracks Uncategorized
We’ve all done it at some point: Cancel something.
For the canceler, it can be a liberating feeling. But that cancel usually means lost money for a business.
In our last blog post, we touched on how to get more extended warranty renewals. This time, we’ll focus on how to prevent cancellations.
First, Define Your Churn Goals.
You won’t be able to keep 100% of your customers. Don’t beat yourself up. Not even Amazon or Netflix can.
What you can do is confront this reality and work towards a cancellation rate your company finds acceptable.
For example, how would your bottom line look if you prevented just 10% of cancellations? 5%? 50%?
Start small with smart goals while you work toward incremental improvement.
For example, you could…
Identify Your Most Valuable Customers.
It’s a hard truth: Some customers are better than others. Maybe they’ve had a VSC policy for years and never filed a claim.
You really don’t want them to cancel.
Or maybe they have service contracts on their home, beach house, RV and motorcycle.
You definitely don’t want them to cancel.
But how do you figure out who those can’t-live-without customers are?
You run a web-based report in our CRM using whatever factors you want.
And while you’re doing that…
You Can Spot Cancel Trends.
One of the easiest ways to stop a cancel is predicting when it might happen.
While Inline CRM isn’t quite the same as a crystal ball, it might be the next best thing.
You can run a report in our system to see:
- Average customer lifespans
- Which policy type is canceled most
- Common reason(s) for canceling
- Pretty much anything else
Once you know what to expect, you’re prepared how act. And then you should…
Build a Cancel-Stopping Squad.
Some people are natural sellers. But when they get a call from a customer who wants to cancel, they lose their edge.
On the other hand, there are people who turn their charm up to 11 when dealing with even the most serious of cancel threats, even if they’ve never spoken to the customer and don’t offer any incentives to stick around.
It doesn’t matter who you pick to be your “stoppers.” It can be a dedicated inbound staff. You can outsource it or keep it with your sales reps. The important thing is this: Identifying roles and letting people know their responsibility.
So, now what?
Use Our Dashboard to Direct Your Efforts.
Your call center or sales team will see each day’s must-do tasks the millisecond they log in—and be able to record the outcome.
You can customize whatever information you want to appear—even cancel prevention tasks.
The data’s all there for you to follow through without pivoting or using outside clunky software.
And while they’re stopping cancels, remind them of this:
Customer Service is Your Secret Weapon.
Simply saying “We care about our customers” is easy.
Proving your promise is harder, but boy it’s worth the effort.
Here’s a mind-blowing image for proof:
Simply put: Companies that eat and sleep customer service see a 307% return on their efforts. That ROI is better than the S&P 500!
So, empathize with would-be cancelers. Be patient. And remember to smile, especially if they’re upset! Studies have shown that smiling when you speak on the phone makes customers happier. Using e-smiles or emojis in chat sessions even improves a customer’s perception!
Another way to become a next-level service leader?
Improve Your Onboarding Process.
Some companies might think the hard part is over when they make a sale.
They couldn’t be more wrong. The fact is, the moment you gain a new customer, the clock starts ticking on a potential cancel.
So, kick things off with better onboarding.
How? We’re glad you asked.
You can even identify customer milestones to send emails through our CRM. Once those rules are triggered, your customer gets some automatic love sent to their inbox!
A Final Piece of Advice.
We know that asking a rep not to sell is like asking a fish to breathe out of water.
But just because “The customer is always right” doesn’t necessarily mean that customer is right for you.
In other words, if you have data to show that someone is likely going to cancel as part of the sales process, do you really want them as a customer to begin with?
A surefire way to know a prospect probably won’t work out is if they’re on the “Known Litigator” list—and since our CRM integrates with DNC.com, you won’t have to worry about them becoming part of your churn problem.
Ready to Stop Customers from Canceling?
Get a free trial of our CRM to see all the tools you have at your fingertips