The ongoing pandemic has shown how drastic and sudden market changes can be. To survive in a rapidly changing environment, you should make retaining loyal customers the main priority. That means minimizing customer churn.
Even if your online store is doing well, you may still see churn. Maybe you’re providing outdated information, or perhaps there’s an issue with your landing page design. Either way, it’s critical to be aware of the problem so you can quickly fix it.
So, let’s talk about churn on an ecommerce landing page. How do you calculate it, and what factors should you address? Finally, what are best practices for improving customer retention?
What is customer churn and how do you calculate it?
Churn is what happens when customers decide they no longer want to buy your product or service. Let’s say each month, some of your clients renew their subscriptions to your services and new customers register for it. At the same time, other customers cancel their subscriptions or fail to renew. Those lost customers are the churners.
To calculate churn, you need to figure out why these buyers lost interest. The reasons for this vary greatly. They may have started doing business with a competitor, been disappointed by the results, or had a poor customer support experience.
It could also mean you’re targeting the wrong audience, in which case you might want to consider investing in customer success.
To track customer churn for a given period, subtract the number of clients who have converted on your landing page at the end of the chosen period from the number who converted at the beginning. Then, divide that amount by the total number of clients at the beginning of a chosen period.
If you’re new to the market, your churn rate is likely to start out high, so don’t hit the panic button if you see double-digit churn rates. However, if you don’t see a decline in churn after a few months, it’s time to investigate why.