{"id":12444,"date":"2019-01-08T16:51:25","date_gmt":"2019-01-08T15:51:25","guid":{"rendered":"https:\/\/chartmogul.com\/blog\/?p=12444"},"modified":"2023-08-11T11:13:24","modified_gmt":"2023-08-11T09:13:24","slug":"5-sneaky-reasons-youre-losing-customers-despite-your-best-intentions","status":"publish","type":"post","link":"https:\/\/chartmogul.com\/blog\/5-sneaky-reasons-youre-losing-customers-despite-your-best-intentions\/","title":{"rendered":"5 Sneaky Reasons You’re Losing Customers (despite your best intentions)"},"content":{"rendered":"

\"kristen-decosta\"<\/em>Kristen LaFrance is the Growth Lead at Churn Buster. She is dedicated to educating companies and founders on the importance of customer retention and the dangers of ignoring churn of all types.\u00a0<\/em><\/p>\n

Thanks to Kristen and the Churn Buster team for sharing these common churn causes and helpful avoidance techniques.<\/em><\/p>\n

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So you\u2019re focused on improving customer retention, trying to do everything in your power to reduce churn. That\u2019s awesome! But maybe your efforts are falling short and churn prevention is starting to feel a bit overwhelming and disheartening.<\/p>\n

This is actually extremely common. Churn is tricky. You\u2019re dealing with human beings who have different needs, different communication styles, and different decision-making processes.<\/p>\n

So even if you\u2019re working as hard as possible to keep those hard-earned customers, it can be a long and arduous road to retention. If you feel like you’re doing your best to reduce churn, but you\u2019re not seeing the results you expected, you may be missing the mark on some sneakier churn drivers.<\/p>\n

Let\u2019s look at some of these lesser-known reasons you may be losing customers.<\/p>\n

1. You’re marketing to the wrong people<\/h1>\n

New customers are exciting, I can level with you on that. This excitement makes it tempting to think any new customer is a customer worth celebrating, but that\u2019s not always true.<\/p>\n

There will be leads that come into your pipeline who simply aren\u2019t a good fit for your product.<\/p>\n

Maybe their needs don\u2019t match your offering perfectly or the tech is too advanced. Maybe you don\u2019t actually offer what they thought you did. There are endless reasons for a bad fit between product and customer, so don\u2019t get too hung up here.<\/p>\n

It\u2019s important to remember that bad-fit leads will eventually churn out no matter how incredible your product is. These users are simply finding a mismatch between their needs and your service. Don\u2019t take it personally, they\u2019re just not meant to be on your platform (and if you\u2019re putting the customers\u2019 needs above your own, you will be okay turning away people you can\u2019t serve well).<\/p>\n

Even in the early stages of growth, converting bad-fit leads into paying customers can actually cost you more<\/a> in the long run. When your product simply isn\u2019t the solution they need, they will drain your support team and pull your resources and attention away from more valuable customers.<\/p>\n

So how do you spot a bad-fit lead before they become a customer<\/a>? First, make sure you understand who the best-fit customer is and make detailed buyer personas.<\/p>\n

What are the characteristics of your most successful customers? How did they find you? What were their specific pain points? How does your product solve them? What is their role in the company? Were they the decision maker? If not, who was?<\/em><\/p>\n

Next, figure out what a bad-fit customer looks like so that your marketing and sales team can spot them before they convert. Create buyer personas for poor-fit leads as well and ensure everyone is educated on who you want to hold at the door.<\/p>\n

If you’re unsure if this is a problem for you, analyze your churn in monthly cohorts. If you’re seeing high levels of churn early in the user journey, take a closer look at who you’re marketing to and how their needs line up with your offering.<\/p>\n

\"churn-cohort-table\"<\/p>\n

Ensuring you’re bringing in the best-fit customers will set you up for dependable growth built to last.<\/p>\n

2. You’re focused too heavily on new customers<\/h1>\n

This ties in really well with the previous point. Yes, acquisition is absolutely vital to continuous growth. You need to be bringing in new users as often as possible. But, if you can’t keep those customers long-term, you’re just running in place.<\/p>\n

Retention is the bedrock of any successful SaaS business. You need a stable use base with compounding growth instead of a shaky one that’s constantly churning and burning through customers.<\/p>\n

If you’re fighting nonstop to bring in new customers, but not focusing on your existing customers, your churn battle is going to be never-ending.<\/p>\n

Think of it this way: When you build a platform that users stick with and continue to pay for, in turn, you increase your funds and resources available to market to new customers. So for sustainable growth, retention is just as vital (if not more vital) than acquisition.<\/p>\n

So what do you do? Invest in your customers more than you invest in your leads. Systematize customer success<\/a> so that every team member is focused on creating the best experience for your current user base.<\/p>\n

Here are a few quick tips to help you focus efforts on existing customers:<\/p>\n