Love, not Loss! Spark Brand Passion with These 3 Valentine’s Day Tricks to Combat Customer Churn
Brand attrition, otherwise known as churn, is a hot topic on the minds of many these days. The swirl of inflationary pricing, economic uncertainty, and shifting consumer behavior has created a full-on hurricane of once highly engaged customers now losing their brand love. Much like the path of romantic love, retaining and igniting the spark for your brand isn’t for the faint of heart.
As Shakespeare made abundantly clear, “the course of true love never did run smooth.” So, what is happening and what is to be done?
A 2020 report by Statista identified a 21% to 25% average churn rate across sectors from retail, financial services, and telecom. The leaky bucket raises two significant paths for those of us in customer insights.
The first path digs in to understand the drivers of attrition. What is causing customers to cool and leave? The second path sheds light on ways to retain customers while also exploring the possibilities of kindling a fresh brand romance with new customers.
At Ignite 360 we’ve partnered with many brands on this very challenge. Here are three hot takes to keep the magic going. It starts with understanding, involves a heavy dose of empathy and, of course, improved communication.
Do You Really Know One Another?
Like any good relationship counselor might offer, the first question to consider is “how well do you know one another?” When’s the last time you invested in, or refreshed, your understanding of your category consumers? We recently partnered with a global food company on a customer segmentation to do just that. Their segments hadn’t been reviewed since 2018. A lot had happened, and much had changed in their category. They needed to get out of the ‘one size fits all’ approach to targeting and stop assuming the behaviors, attitudes, needs, and wants of their core consumer matched those of their growth target. Our client discovered distinct differences across segments and some emerging opportunity areas that had not previously been considered. They were able to revisit their growth strategy with a better understanding of who they were really going after and why.
Plan a Date Night Just Because
Research budgets and time may be in short supply but the occasional consumer ‘date night’ doesn’t need to break the bank. An easy date with your consumer can happen even when there is no burning business issue or a high-priority initiative at stake. It could be an organized team field trip to hang out and observe in the spaces and places where your brand and your consumer meet. Go where they go. See what they see. What do you notice?
There are also cost-effective ways to find, recruit, and host a “speed dating” style event. We’ve helped many clients pull this off both in-person and virtually using our Lifeology game play to spark rounds of get-to-know-you banter. Throw in a few refreshments and maybe a fun prize or two and you’ve got yourself an opportunity for discovery.
Are You in It for the Long Haul?
But why wait years to reconnect? Don’t let the relationship run on auto-pilot. After all, it’s the ongoing, consistent moments of connection that keep the romance going. The key is to have a plan, a cadence and stick to it.
We designed a year-long consumer empathy program for a leading beverage brand where we brought brand team members together with their consumers regularly for immersion, observation, dialogue, and creative connection.
No white-walled research facilities or hidden, behind-the-glass watching. Instead, we created direct contact situations in different contexts with unique interventions including coaching the team through the process and robust debriefs after each activity. Illuminating conversations and new ideas were the result. How long has it been since you had a conversation with your consumer? What are you waiting for?
Let love bloom this Valentine’s Day.
By implementing these practical tips and leveraging consumer insights, you can effectively target your growth segment while maintaining the love with your core consumer.
Eager to hear more love tips and design your next consumer date night? We’d love to connect at hello@ignite-360.com.
