Did you know that you can use a lead magnet to bring back former customers?
Sounds too good to be true, right? After all, once you lose a customer, it’s rare for them to ever return. That’s true, but fortunately, rare does not mean impossible. With the help of an effective lead magnet, you can bring back former customers who’ve left the building. In this post, we’ll show you how to use a free gift to do just that. Let’s get started.
Understand the Number One Reason for Churn
The term “churn rate” refers to the amount of customers who leave a business. You definitely want to keep that rate as low as possible. But, when churn inevitably happens, you can mount a win-back campaign. That’s the good news.
However, before you create a win-back campaign for churned users, it’s essential that you understand why they churned in the first place. Otherwise, how will you be able to give them back what they were missing?
Below is the top reason why customers leave (and, by the way, it’s not about price):
Poor customer service.
That’s right. Lack of quality customer service is the top reason why customers leave.
Many companies are so focused on bringing in new customers that they neglect their current ones. The result? Customers leave because they’re unsatisfied with the company’s lack of concern for their ongoing needs. As a result, the company must focus on getting new customers to replace the ones that left. And thus, the vicious cycle continues.
Customer service is all about retention. It picks up where marketing left off. If you want to reduce churn, improve your customer service strategy so that your current customers feel valued.
How to Find Out Exactly Why They Churned
Now that you know the top reason why customers churn across the board, it’s time to collect data on your specific customers. Find out the most common reasons why your users left— the answers may surprise you. In addition to poor customer service, it may be lack of proper onboarding, lack of support, poor communication, or a perceived lack of value.
Brace yourself. It may be difficult to hear the answers. But, no matter what you learn (and how discouraging it may be at the time), remember this: The brutal truth will help you create a better lead magnet in order to bring back your churned users. Here’s how to find out why your users churned:
Conduct an Exit Interview
This is perhaps the simplest option you have. When users leave, send out a request for an exit interview via email. Not everyone who churns will respond to your request, but fortunately, some people will, and those who do are providing an incredible service to your business. At the end of this post, we’ll provide a downloadable list of questions to ask users after they’ve churned.
Review Your Users’ Complaint History
Not getting much response to your exit interviews? Pick up your magnifying glass and check out support tickets that come across your help desk. Don’t just look at past complaints. Also look at current complaints. Answer these questions:
- What are the most common complaints?
- How does your team respond?
- What is the resolution?
- How long does it take for your team to resolve the problem?
- Do you follow up with a satisfaction survey after resolving the problem?
- On average, how many complaints are logged per user?
- Historically, how long does a user stay after making a complaint?
This is just a starter pack of questions to ask yourself as you comb through the complaints. But remember that everything you find will be useful in both preventing churn and bringing back users who’ve already left.
Study the Data
Lastly, study the data to look for clues on why your users may have churned. For every one user who complains, 26 users suffer in silence, or silently churn. You won’t always know for sure why a user left, but you can take a look at their behavior to gain insight. For example, if user behavior slowed down after an update, it may be that the user didn’t like or had difficulty navigating the newer interface.
You’ll have to think like a detective when studying the data, but once you figure it out, you’ll be better equipped for the future.
Create Multiple Lead Magnets
Let’s discuss the different types of lead magnets you can use to win back your churned customers. Remember that you’re not limited to sending out just one type of lead magnet. You can (and should) create multiple lead magnets so that you can address the different reasons why your users churned in the first place.
Here’s a rundown of the different lead magnets that you can create and send to your churned users:
The “Discount” Lead Magnet
Offering a discount happens to be the most effective lead magnet you can send to woo back churned users. And more good news: It’s easy to create. Simply set a discount amount (25% or more usually works) and prepare a “we miss you” email message.
The “We Screwed Up But We Made It Better” Lead Magnet
Sometimes, humility and an honest nod can win back churned users. By admitting that you messed up and showing them how you’ve corrected the problem, you can convince customers to return. Consider offering a demo or a limited free trial to prove your claim.
The “Need Help” Lead Magnet
Your users may churn because they had no idea what they were doing. They started using your service and got lost somewhere along the way. To help your user, create a lead magnet that offers an in-depth tour of how to use your service. Consider gearing this lead magnet to new users who’ve churned without much interaction with your service. This behavior typically indicates that the user doesn’t understand how to best use the service.
The “Report” Lead Magnet
If you work with B2B clients, consider preparing a report-style lead magnet. In the report, compile a list of best practices or relevant statistics about a specific industry that your churned user will care about. In this type of lead magnet, include a section where your service can help the user obtain their goal.
The “Free Valuable Course” Lead Magnet
Another favorite type of lead magnet for winning back churned customers is the valuable email course. Select a problem that your churned user is most likely facing, and create a report that points to the solution. The solution, of course, will be to use your service, but in a new, reimagined way. By compiling this report, you’re also demonstrating your value to the user.
The “Consultation” Lead Magnet
Is your business set up to offer consultations? Going back to the “need help” lead magnet, some users need a little extra guidance in using your service to its maximum potential. You can offer a free consultation where you provide one-on-one assistance to your churned customer in the hopes of getting them back to active status.
The “Ebook” Lead Magnet
Ah, the ebook. Everyone’s favorite. Ebooks are another way to show that your company is serious about providing value to its users. Similar to creating an email course, you can also offer a free ebook to help your churned customer solve a problem.
When to Woo Customers Back
[bctt tweet=”When should you start your win-back strategy?” username=”beacon_by”]
Immediately, if not sooner. The longer you wait, the lower your odds of rescuing your churned user. Whether your user actively decides to leave or slowly fades to black due to inactivity, you need to address the issue as soon as you become aware of churn or churn intent.
For those who’ve canceled their account, follow up with an email exist survey to ask them why they left. For a more detailed list of questions, be sure to download the extra resource at the bottom of this post.
For those who haven’t actually canceled yet but you’ve noticed a decline in activity, send out an email to encourage them to re-engage. You may use many of the lead magnet ideas above, such as an email course, a “need help,” or a report.
While there’s no “one size fits all” answer here. You’ll need to test which lead magnet produces the best results for your win-back campaign. Eventually, you’ll find the right offer to re-engage churned users.
When creating a win-back strategy, harness the power of lead magnets. Lead magnets can work just as well on churned users as they can on pulling in new leads. It’s all about knowing what to offer. Use these tips to help you improve retention and win-back rates.