How to Reduce Churn in Your Ecommerce Business

Businesses rely heavily on their clients for success. Businesses churn rate is likely to determine its profitability and market viability in the long run. It measures how customers are discontinuing business with you. There is a need to control this metric, as losing customers results in loss of revenue.

Read on for insight into how to reduce churn in your ecommerce business.

Pay Incentives

Many ecommerce businesses endeavor to retain their customers through subscription plans. These plans are tailored to be flexible, as seen with monthly subscription plans, to keep customers hooked. While such plans ensure that your customers are comfortable, they create an unpredictable customer attrition rate. This can be managed by offering incentives to customers who pay upfront.

These incentives may include discounts and package upgrades. Both the client and the business win with this strategy. Not offering such incentives makes it possible for clients to cancel and end their subscriptions, terminating business with you. Businesses may utilize funds from prepaying customers to seek close new business opportunities. These incentives may also encourage new business through referrals.

Dunning and Automation

Dunning is a business process aimed at collecting what is owed by customers through communication. This strategy is effected with varied extremes dependent on the business-client relationship. For ecommerce businesses, clients may miss payments for varied reasons. Dunning helps regularize unintentional client exits by calling them to update their subscriptions.

Involuntary churn can grow to significant levels if left unchecked. Automating the dunning process improves its efficiency and eliminates human delay. It also saves valuable time and other running costs. Since automation may utilize emails and reminders, it would be best to ensure safe customer reentry channels.


It is not uncommon for clients to voluntarily unsubscribe from your business. These noticeable trends in ecommerce necessitate intervention to reduce churn. Insightful information can be achieved by getting the customer’s point of view. Surveys are a good way to collect valuable information from your clients on why they are exiting your business.

These surveys may be included as part of the unsubscription process. The survey may request reasons as to why the clients made the decision to unsubscribe. These responses can be statistically analyzed for similarities and trends. Information from these surveys is vital in tailoring your business operations to retain customers by improving customer experience.

Customer Experience and Freedom

Churn rate is heavily hinged on customer experience and freedom with your business. It would be commendable to tailor your business framework based on the preferences of your clients and target market. This may call for freedom with subscription and payment structures to accommodate your clients. Allowing clients to pause subscriptions and modify payment portrays consideration.

This flexible framework also allows clients to easily return to your business after a hiatus. It would be ideal for encouraging your staff to ensure peak levels of customer satisfaction and service to guarantee retention. Initial sign-ups are more likely to engage your business when compared to new prospects. Taking customers through the marketing funnel stages ensures complete satisfaction on their part. This retention limits the churn rate in any business.

Loyalty and Reward Programs

It is evident that people are more likely to spend with businesses that appreciate and reward them. Businesses that have considerable loyalty programs are more likely to retain their clients. These rewards are a business’s way of showing its value to the client. Clients will remember the rewards they gained from doing business with you and come back for more. They also get to feel like they are a part of your business as they enjoy its benefits.

These loyalty programs may be tailored to give consideration to model clients. This measure encourages existing clients to reach certain levels of purchase in a bid to get rewarded. Having a loyalty plan that evolves with the customer would be quite inviting. These programs have the ability to keep your churn rate by giving customers a reason to stay attached to the business.

The Bottom Line

A high churn rate signals a loss of revenue. The above-mentioned tips are capable of taming these numbers.

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