Tag Archives: reports

The word cancelled is struck through with a red line

How to Stop Cancellations In Their Tracks

19 July 2022 Justin Wilkerson 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.

A crystal ball that predicts Tom Might Cancel Next Week

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.

Screen capture of Inline CRM's save tool, which shows fields for Save Methods, Cancel Reason, and Save Notes

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:

Chart showing customer service leaders experience better ROI than the S&P 500

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.

Suggested onboarding emails include personalized welcome message, an explanation of claims process, and a message from the customer's dedicated account manager

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

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Do This, Get More Extended Warranty Renewals

28 June 2022 Justin Wilkerson Comments Off on Do This, Get More Extended Warranty Renewals CRM, Customer Service, Uncategorized

You know the old saying “A bird in the hand is worth two in the bush.”

But do you actually apply its wisdom?

If not, the following stats say you should probably amp up your extended home warranty renewal strategy:

Stats about importance of retaining customersL Companies lose $137 billion a year from customers who do not renew, acquiring customers is 5x more expensive and increasing retention can increase profits by 95%

So, what can you do to dig into that treasure trove of potentially recurring revenue?

Let’s find out.

 

Arm Yourself with Numbers

Let’s be honest. Some customers are going to cancel, no matter what.

But there is a silver lining when they do: Finding out why.

  • Did they find your service to be less useful than they thought?
  • Did it turn out to be too expensive?
  • Did they go to a competitor?
  • If so, which one?

Those are just a few potential reasons, but the reasons exist. Your job is to get data and find patterns—and if you already have data, then getting more granular by asking the why behind the how.

Once you have enough to work from, you can run cancellation reports (and create whatever special report you want) in our CRM to see what the numbers are saying. Then, you’ll know how to improve.

 

Set the Stage During the Sale

Way to go! You’ve made the pitch. You overcame their objections. And now the prospect is a client.

Whether you make the sale online or over the phone, you need to be as proactive as possible to head off any cause they might have for cancelling down the road.

  • Ask if they have any final questions
  • Tell them when their extended warranty will renew
  • Inform them what their renewal cost will be
  • Confirm who will oversee renewing (and make sure to get that person’s contact info)

Bottom line: You’re more in control of the relationship when you take initiative. And that means a better bottom line for your company.

 

Educate Them Whenever You Can

Replacing a blown condenser fan or fixing a heat exchanger is a major benefit of extended home warranties—and it’s pretty obvious when those types of claims will be made.

Even if one of your customers has a fairly new unit, remind them why they have a service contract.

Send an email at the end of April or beginning of October to tell them the average cost to repair their AC or furnace is $X and—thanks to your coverage—they could save $Y if something happens.

Or, you could send them a short list of seasonal maintenance tips so their appliances are in tip-top shape.

The more you try to help your customers—especially when they aren’t asking for it—builds their trust. And 81% of customers say trust influences their behaviors.

Trust influences behavior for 81% of customers

Prove Your Worth

People want to feel like they made a good choice. They crave validation for their decisions.

Here’s proof: Using testimonials can generate 62% more revenue!

Testimonials can generate 62% more revenue

So, turn customers who use your service contracts into social proof: Glowing reviews, testimonials, mini case studies. Use any chance you can to put a face with figures showing how your service saved a homeowner from budget-breaking expenses.

Blast it on social media or a review section of your website. The more you can demonstrate how you help real people, the more likely your customers will renew.

Use “Why Stay” Messaging

Is your renewal messaging different from your acquisition messaging?

More importantly, have you even thought about changing your messaging based on customer type?

A recent survey found the answer for most people is a resounding “No.” to both!

58% of businesses think acquisition and renewal messaging should be the same 53% don't have time or resources to differentiate renewal messaging. 28% haven't considered differentiating. 20% prefer consistent messaging.

Here’s why that line of thinking is a mistake: Prospects in the consideration step of their journey need to be told something different than existing customers.

This is the crux of the “Why Change” vs. “Why Stay” funnel. Your company is no longer the challenger fighting for business. You’re the status quo fighting to keep business.

Now, you could pitch a new idea for your services to current clients, or reinforce why your customers chose you in the first place.

Which avenue performs better?

Studies show reinforcing the status quo works better.

Stats about effectiveness of reinforcing status quo messaging: 13% boost in renewal intentions, 9% boost in positive impressions of current provider, 7% rise in credibility perceptions

So, what should you do when renewal time rolls around?

You could send materials to extended home warranty customers using our mail merge solution saying houses in their neighborhood are X% more likely to need a repair, or the cost of materials for their appliances is expected to rise by Y% over the next year.

What would it mean if they didn’t renew?

Tell them, and they’ll be more inclined to act.

 

Want to renew more extended home warranties?

Schedule a demo of our CRM and you’ll have the data, reports and technology to renew more customers—and keep their revenue coming in.

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