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Best Ways to Stop Customer Churn Immediately

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Every business faces churn. If your business is facing churn, you are not alone. But everyone deals with it differently. Some companies immediately look for new customers while some invest all their efforts in retaining existing ones. Customer churn is the number of customers who stop doing business with a company during a given period. According to research, avoidable customer churn is costing U.S. businesses $136 billion a year.

What is Customer Churn?

Customer churn is the number of customers who leave the company or stop business in a given period. Churn rate is important cause it shows how much it costs to lose business with customers. According to research by Bain and Company, a mere increase of 5 percent in customer retention can improve profits up to 95 percent.

Churn rate is calculated by dividing the number of lost customers by the number of customers you started with in that period of time. Knowing about customer churn reduction is necessary for any business.

Why do customers leave a company?

Customers can leave a company due to multiple reasons. Some of them include-

  • Customer is dissatisfied with your service.
  • Product does not fulfill customer requirements.
  • Customer doesn’t get personalized service.
  • Lack of communication.
  • Customer feels disengaged with company ethos.
  • The price feels unviable in the long run.
  • They are no longer a target audience for your product or service.

Most churn happens in these brackets. Sometimes customer needs outgrow the category or niche; this may cause churn.

Why customer churn matters?

Customer churn causes a problem for companies in many ways. As per Forrester, it costs 5 times more for companies to acquire a new customer than to keep an existing customer.

Companies lose more than $1.6 trillion per year due to churn. If more customers are retained, more revenue is generated by companies. Harvard Business School report says that nearly 65% of a company’s business share is from existing customers. Customer churn is unique for each company.

For some companies, customers find the price point not effective and hence want to switch. Poor market fit is another reason customers churn.

Churn rate formula= Number of customers lost/ Total number of customers

11 Effective Strategies to Reduce Customer Churn Immediately

There are some things a company can do to reduce customer churn. Here are the 11 best ways you can reduce churn immediately.

  1. Analyze Reasons for Churn:

    You need to find out why customers decide to leave in the first place. The best way to know why they leave is by talking to them. Getting customers to talk about their issues is the best way to learn. If you connect with them over mail or phone about their issues, chances of replying are faster.

    Fast replies show that you genuinely care about them and want to find out what is wrong importantly. If you know the reasons for churn, mitigating it becomes easier.

  2. Engage with Customers:

    Engaging with customers is also important. It does miracles in reducing churn. Higher engagement means better interest. Relationship marketing or engagement is making your customers feel valued. Showing them the value in your products and services through good content will help keep them hooked.

    Engaging through emails and calls can help the existing customer base clarify upcoming upgrades, news, and more. When you engage, you have to practice social listening as well to create a great customer experience.

  3. Target the right set:

    No matter how many strategies you make, if the audience is wrong, there are fewer chances of success. Targeting the set of audiences who are likely to use the product for the long term is important.

    Those who appreciate the long-term value will stay invested for a long time. You cannot consider every customer as the best. Instead, it is important to keep the right ones more invested. The right targeting is important even for marketing and sales purposes.

  4. Proactive communication:

    If you reach out to customers before they need you, they feel very happy. If you demonstrate an interest in their activities, they understand the value of the product or service.

    Being active with customers is great. If someone has signed up with the product or service, you need to check if they leverage the benefits. If they are not, reach out and ask why. When customers know the capabilities, it is easier to keep them interested and active. Customer engagement is the key here to build long term relationships.

  5. Estimate who is at risk:

    The best way to not get burnt is to avoid the fire. The best way to prevent churn is not to let it happen. There is always a set of customers who will leave more quickly than someone else. Know who these individuals are and reach out to them.

    Identifying those edgy customers is one of the most popular churn reduction tactics. Nearly 35 percent of B2B organizations have reduced customer churn by identifying customers.

    Once you identify their pain points and who they are, half the reduction is made. They may have written a mail once or complained about an issue. Look at those numbers and decide if their experience can be of critical importance in estimating churn.

  6. Ask for feedback:

    It is often frustration that leads to churn. When customers are annoyed with products or services, it can manifest as churn. Getting to the root of the issue is necessary to get feedback early.

    Creating a customer feedback loop is necessary to present the business’s right tone with an AI chatbot. A survey, or feedback form can immensely help in understanding the customer’s pulse.

    When you know what the majority feedback is, you can apply those remarks on a product or service to improve customer satisfaction. Once you get the feedback, take it seriously.

  7. Educate your customer:

    If the customer has good quality educational support materials, it will increase retention and reduce churn. Free video training, tutorials, product demos can influence customer mindset. Any tutorials, training, and demos will keep your customers informed and comfortable.

    You must teach your employees how to use your site tools with adequate training. Good training will be necessary for onboarding and implementation. When you pass the knowledge on to your customers by way of education — it can lead to high retention levels, as it is the backbone of customer success. If your customers know how to use the product, chances of deflecting are low.

  8. Offer incentives:

    A great way to retain customers is to offer them incentives. Special offers, discounts, and deals will immensely help customers who are likely to defect.

    Offering such incentives is very effective in reducing churn. One thing here is offering a deal or incentive that does not drill a hole in your pocket. Your costs of retaining them should not exceed the profits you will get from their continued relationship.

  9. Give the best service:

    Isn’t this the finest tip of all? This is the most important way to keep customers. Poor customer service is the biggest reason customer churn occurs. As per a report by Oracle, the two main reasons for customer churn include poor or slow service and rude staff.

    According to research by Forum Corporation, customer churn due to poor service occurs at a staggering 70 percent. Customer service is, in fact, the pillar of customer success.

  10. Take Complaints seriously:

    Complaints are important. They reflect a problem in the process that can be corrected if paid attention to. It is necessary to note that 96 percent of unhappy customers do not complain. The ones complain are, often, not taken seriously.

    One negative experience is all that it takes to stop doing business with a brand for more than 30 percent of customers. Customer reviews on social media, online portals, and word of mouth publicity can all be deciding factors. Have a live chat feature on your site to get feedback and insights on the product or service.

  11. Stay Competitive:

    Be competitive in the market. What makes your company stand out? What are the aspects that make it different? What are the losses for customers if they quit? Analyze what makes your company special and present that piece of you — to customers. Be situational in upgrades. Understanding the precise situation will help you stay afloat and solve customer problems.

    If the product has undergone any improvisations, let them know. This will showcase the unique points and let customers know the positives of the product. Spot the ‘next big thing’ and be there. Keep shifting as per trends, technology, and public mindset.

Bottom Line: Reducing Churn is Important

It is clear that losing customers is hard. So it is better to provide them the best service. Creating conditions where customers see clear benefits in the products you offer is important. By working on the tips, you can let your customers stay loyal to the company.

Even a mere 2 percent increase in customer retention can reduce customer acquisition costs up to 10 percent. Churn is inevitable, but we can only work to reduce the impact of it.

Customer churn is mostly due to poor customer service and lack of awareness instead of product competency or value. Give your customers the value they signed up for. Communicate with them about your products and enhance your customer service levels.

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How to Use 6 Moments of Truth to Create a Strong Bond Between Customers and Your Brand

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In the 1980s, Jan Carlzon, President of Scandinavian Airlines, introduced the concept of the “moments of truth� to his organization. In Carlzon’s words, “The Moments of Truth are the various points at which people connect with the brand.� Here is how to use six moments of truth to create a strong bond between your customers and your brand.

Moments of Truth

Carlzon believed that if you create a positive outcome at each Moment of Truth — then your business will be successful. That theory proved accurate when Scandinavian Airlines became one of the most admired industry brands, despite tough competition.

Since then, the Moments of Truth concept gained momentum as it rolled through sales, traditional marketing, and growth marketing that focuses on user acquisition and retaining customers, and turning them into passionate advocates.

Each brand uses it to build an emotional connection with customers at each moment.

Initially, only Carlzon used the concept of Moments of Truth. As the theory progressed, more brands, like Procter & Gamble, Google, and others, joined the movement, unveiling the exact Moments of Truth necessary to reach their users’ hearts.

Today, you will find countless micro-moments involved in the theory. In this post, I will discuss six significant moments at each step of the entire customer journey.

Without further ado, let’s explore what those moments are and how they will help you build a long-lasting relationship with customers.

6 Moments of Truth to Build a Strong Bond with Customers

1. Less than Zero Moments of Truth (<ZMOT): “I don’t know.�

People get on Google and research products or services before buying them. But a “before-Google� moment exists when something happens in the customers’ lives that lead them to go online and find out the answers or solutions.

This is the “Less than Zero Moment of Truth� (or “<ZMOT�). A brand must plant the idea of why potential customers need their product or service before they jump onto Google for more information. Call this the “awareness stage� when customers have a problem but are not aware of it yet.

To create awareness during Less than Zero Moments of Truth, you will require:

  • Data on who your targeted audience is
  • Data on which channels they hang out in the most
  • Content with search intent that fits well at the awareness stage, as well as fits the channel itself

For example, Femibion is a German pregnancy healthcare brand owned by Merck Consumer Health. Merck wanted to raise brand awareness by offering a free baby-planning book called Femibion BabyPlanung.

To sell the planning book would be challenging because mothers weren’t even aware that they needed a baby-planning book to demystify practical issues during pregnancy.

Merck took this challenge and worked with Facebook on a multistage campaign, targeting female audiences in Germany.

The campaign debuted with a cheeky series of carousel ads, presenting blissfully happy pictures of “baby-making places,� or particular spots where women might conceive a child.

The later ads possessed a more standard format, featuring the book’s image, accompanied by a call to action.

By the time the brand ended the promotion, the ads had a 35% increase in conversion rate. As a bonus, the company successfully generated 10K leads while decreasing their sample distribution cost by 2X.

Because Less than Zero Moments of Truth is just an awareness stage, you can’t guarantee leads. Generally, when users become aware of a problem or solution, their next step is to Google-it — which brings us to our next Moment of Truth.

2. Zero Moments of Truth (ZMOT): “This is the problem. I need a solution.�

Here comes your favorite moment: When potential customers jump onto Google to find the solution or answer to their problem or question. They may find themselves fascinated by your product or service while on their journey.

The moment takes place before the consumer has decided to buy. At this moment, consumers also look for websites, reviews, and other confirming data before they make up their minds.

Google, itself came up with the Zero Moment of Truth (ZMOT) in 2011.

ZMOT is a collection of multiple moments, also known as a “micro-moment,� wherein consumers go through multiple mini-moments before buying the product.

How does a Micro-Moment Play Out?

Picture this: A traveler is seeking a new place to explore. He runs into an ad for a Smoky Mountain resort on social media. He searches Google to see how the place looks and read some Google reviews; then, he asks friends and checks out YouTube to find worthy places around the resort.

In this case, the potential customer goes through multiple micro-moments before making fully informed decisions using all available sources.

The key here is to optimize each micro-moment that takes place along the journey, starting from when consumers go online to when they select the product or service, read reviews, compare information, and so on.

There are three steps to optimize each Zero Moment of Truth:

  • Find your zero moments: Imagine a customer’s journey, starting from going to Google with potential searches to consuming everything that comes along the way. Note every moment that takes place. Figure out ways to integrate your brand. For example, you can collect Google reviews from past customers to convince future customers.
  • Answer the questions that customers ask: Work on discovering all the questions those potential customers may ask and answer them in every possible way. For example, answer the question, “What are the best places to visit around the Eiffel Tower?â€� in an article or video format.
  • Adopt four parts of communication: There are four ways to communicate with your potential customers at the Zero Moment of Truth stage via content:
    1. Paid advertisements: Google ads or social media ads
    2. Owned content: Creating your own content to promote your brand
    3. Earned content: Winning online product reviews and social media buzz
    4. Shared content: Natural brand mentions, like people sharing your stories by word of mouth

Once consumers register your brand in their mind after repeated mentions in various micro-moments, they become ready to click “buy�—but first, they need a little nudge.

3. First Moment of Truth (FMOT): “I want to buy it but…�

Now comes the most sensitive moment.

First coined by Procter & Gamble, the “First Moments of Truth� (or “FMOT�) are the 3-7 seconds after the shopper has become convinced by the brand’s product or service. This is when brands have the best chance to convert searchers into buyers by bewitching their senses, values, and emotions.

Generally, these moments involve the customer reading a description or hearing a pitch to understand better how the product serves their needs.

Consider this: Dao Labs is a Traditional Chinese Medicine (TCM) creator brand for a Westernized audience. They wanted to make their medicine feel approachable, credible, and necessary for a balanced lifestyle.

The problem was when visitors arrived at their product page; they didn’t feel familiar with TCM. So, the brand started telling large stories wrapped in history, usage, and benefits clearly.

As a result, they built a product page that appealed to human emotions, values, and everyday health issues.

A good presentation with a little list of how your product will fulfill the user’s needs is all you will need to turn visitors into buyers. On top of that, allowing users to zoom in and showing multiple angles will increase their likelihood of clicking the “buy� button.

Once they click “buy� and finish the payment, this is where retailers typically drop the ball.

Your real journey to create strong bonds begins when customers purchase your product and reach the moment of the gap.

4. Actual Moment of Truth (AMOT): “When will my product arrive?�

Once consumers buy a product, brands lose control over the process (except for keeping customers informed). More importantly, no one looks after the emotions that customers go through when purchasing the product and when they receive it.

The time period can be as short as immediate product delivery, like an online subscription, or a few days’ deliveries for a physical product.

Amit Sharma, Founder and CEO of Narvar, call this gap the “Actual Moment of Truth� (or “AMOT�). This is where you have an opportunity to do more than send a shipping confirmation email. The actual moment of truth is where you have an opportunity to tell the customer that they made the best decision by choosing you over others.

Let’s take an example of cold cream to understand how to keep users entertained during the AMOT.

Let’s say a customer buys cold cream online from a brand. Along with the shipment details, the brand can offer suggestions on when to use the cream and how many times it should be applied. Maybe the brand can go even further by sharing tips on protecting their skin against chilly weather.

Regardless of your business, there are always Actual Moments of Truth that occur while the customer waits for the product to arrive. Find them and use them as an opportunity to deliver a more positive experience.

After customers receive your product and are enjoying the tips you have sent them during the AMOT, they will move towards a resulting experience. It is at this point when your product is expected to support your pre-purchase promises.

5. Second Moment of Truth (SMOT): “Let’s Use the product.�

When customers receive the product and start using it, it has a major impact on their satisfaction level. Hands-on product experience directly affects the reputation of a brand, as well as its audience reach. This is when customers subconsciously start thinking about whether they would like to continue a relationship with the brand or not.

Procter & Gamble coined this moment as the “Second Moment of Truth� (or “SMOT�), which is when customers start using the product.

Many marketers’ challenge is to ensure an excellent experience when everything depends on the product’s usage.

Why do you need content marketing?

  1. To provide targeted information to help customers use their products.
  2. To offer toll-free numbers to solve their issues instantly, for free.
  3. To help them return or fix the product as soon as possible.
  4. To send them how-to videos and user guides.
  5. To be accessible instantly to answer their questions.

By doing so, brands will potentially convert a one-time buyer into a fan. Even if your product fails to meet their expectations, you can always promise to live up to the next time.

When customers finish experiencing your product from the inside-out, they will mark the occasion by sharing their experience with friends, family, and online communities.

6. Ultimate Moment of Truth (UMOT): “Hey, I bought this product, and it’s…�

The instant customers get familiar with your product; they will run to their friends and online networks to share their experience with others. The intention behind this is their need for self-expression and their desire to notify others.

Procter & Gamble termed this as the“Ultimate Moment of Truth� (or “UMOT�). This is why customers provide feedback on products in multiple formats, like sharing with friends or colleagues, posting Google reviews and Facebook reviews, uploading YouTube videos, etc.

Shared experiences are like a snowball. Once it starts rolling down a long, snowy hill, it collects more snow on the way and turns into a big ball that can make or break your brand. The more people share experiences with others, the more people become aware of your brand. This can be a good or bad thing, depending on the feedback that is shared.

These reviews will become discoverable and influential enough on search networks to beat all your SEO and branding strategies.

Sure, you don’t have control over how customers will experience your product and share their opinions about it online. But you can respond to them better and align their experience with their expectations.

The question is: How?

Let’s take a look at these foolproof steps to optimize the Ultimate Moment of Truth.

Step 1: Collects insights on customer experience.

Collect customer feedback from all places possible. You can use tools that offer brand mention services to inquire about places where people share their brand experiences. Keep track of customer call feedback and complaints to obtain a deeper understanding of the customer experience.

Step 2: Get a team involved

Decentralize your feedback efforts by allocating team members to take care of positive or negative feedback. This can include apologizing for defects and promising to exchange or refund the product, or thank you for an impressive review.

Step 3: Keep tabs on opportunities

Finally, instruct your team to stay focused on opportunities to take advantage of the ultimate Moments of Truth. No matter whether customers are too angry or unimpressed with your products to keep the relationship going, you can grab these opportunities to send offers that will make up for their disappointment or help them develop a good impression of your brand.

These optimized Ultimate Moments of Truth will complement the entire customer journey. Each shared experience, along with the brand’s response to them, will turn into a Zero Moment of Truth for each potential customer. In other words, the Ultimate Moment of Truth can be the Zero Moment of Truth for other customers who come online with lots of questions in mind.

And the cycle keeps going.

What you will realize is that moments of truth aren’t just moments. They are an experienced, fueled continuum.

Keep the flow going and come back to share your experience.

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A CEO’s Perspective on Net Promoter Score

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What differentiates a great business from a good business is the power of customer loyalty and customer satisfaction. A great CEO understands how a satisfied and loyal customer can accelerate business expansion. They have transformed their companies into industry leaders by building loyal relationships with their customers and employees. They have used a magic metric the Net Promoter Score. To understand where their business is lagging and improved on it.

A CEO creates a benchmark for its organization and makes sure the brand promise is delivered.

Net Promoter Score

The Net Promoter Score is a simple business metric that gauges how well you are meeting your customers’ expectations. It offers a powerful lens into what customers think about your business and reveals what is wrong.

NPS is a robust and powerful solution to boost word-of-mouth marketing, increase customer satisfaction, reduce customer churn, and offer better customer experience.

The Three Categories of the Customers

The Net Promoter Score survey aims to ask one question to all its audience. ‘On the scale 0 to 10, how likely are you to recommend our company to your friends and family?’ and based on its answers, it measures the customer loyalty of your business.

Also, based on their scores, the customers are divided into three categories. That is, Promoters, Passives, and Detractors.

Promoters: They are the customers who gave a score of 9 or 10. They love your brand’s products and services and are the most loyal customers.
Passives: They are the customers who gave a score of 7 or 8. They are satisfied with your brand’s products or services but can switch to your competitor for a better offer.
Detractors: They are the customers who gave a score of 6 or below. They are not happy with your brand’s services and/or products and are most likely not willing to purchase from you again.

How do you calculate NPS?

Your company’s Net Promoter Score ( can be calculated by simply subtracting the percentage of Detractors from the percentage of Promoters.

NPS (Net Promoter Score) = % Promoters – % Detractors

How can NPS Data help your Business?

The Net Promoter Score is an effective way to run a business. At the same time, many business leaders are skeptical about the effectiveness of NPS. Numerous studies have shown that high NPS can be directly linked to the growth of the company.

Here are the 5 crucial points about NPS data with industry leaders’ case studies that any business owner must know.

Reduction in Support Costs

The Net Promoter Score helps in reducing the business costs by identifying the pain areas of the customers, enabling the Support team to serve the customers better.

This results in a reduction in call times, improvement in satisfaction score, and an increase in the average number of calls handled at a time, which reduces the support costs of any business by a significant amount.

Symantec provides cybersecurity software to protect infrastructure networks, data, and communication. Along with security measures,

they also address any compliance, availability or performance risks. After adopting NPS in 2004, there has been a 50% increase in their product lines, a 30% reduction in support costs, and a significant increase in the number of positive reviews.

Increased interaction with Current and Prospective Customers

The NPS is a simple metric to track your position in the market. But what is significant is asking the right questions. Often small things have the most significant impact on the NPS, and it is by talking to your customers that you will understand the reasons behind brand loyalty.

Slack is a business communication platform that brings the communication of all the teams of a business on a single platform. Slack Team used the NPS to answer one question ‘Why should people recommend or not recommend your brand?’

They refined all the interaction with the current and prospective clients and tracked their progress with the Net Promoter Score, which resulted in a $1 billion valuation in one year through positive promotions tracked by NPS.

Work on the Detractors

After a Net Promoter Score survey, it is important to work on the Detractors of your business as their feedback offers an opportunity to improve your business and by analyzing their feedback with actionable insights.

You can fix some of your problems quickly or take a required action to improve your services or products.

Apple retail store managers, post their NPS survey, reached out to all of their detractors or dissatisfied customers within 24 hours and analyzed the purchase patterns of the detractors who spoke to store managers and who had not.

This survey resulted in additional revenue of more than $1,000 or $25 million in a year.

Work towards profitability

In the Harvard Business Review, it has been observed that the companies adopting the Net Promoter Score tend to grow twice the rate of their competitors than those who have not adopted NPS.

It has been recognized that businesses working on their NPS analysis have sustainable, profitable growth, which begins with creating more promoters and fewer detractors.

Philips Electronics used the NPS for a few of its accounts for some time and observed where the NPS increased. The revenue grew by 69%, where the NPS didn’t change, the revenue grew by 6% only, and where the NPS was not adopted, the revenue decreased by 24%.

Reduce your Customer Churn

Fred Reichheld created the Net Promoter Score (NPS) to measure the customer’s brand loyalty. The NPS measures customer experience and the likelihood of repeat business. Also, it is the only metric that evaluates the customer churn that helps in working against the inevitable failure.

Australian Based telecommunication company, Optus, posted a net profit of $227 million during the last quarter of 2013.

According to the Australian Business Review, the Country Chief Officer Kevin Russell has said that after they adopted the NPS in 2013, there has been a six-point increase in their Net Promoter Score over the December quarter. That was a 50% decrease in the customer complaint,s which resulted in a 41% increase against the last quarter of 2012.


The Net Promoter Score is the one number that you need to grow. It is a simple, profound, and effective way to reduce customer churn, improve loyalty, and word-of-mouth marketing, which leads to great profits.

Conducting a survey and gathering data is the first step. The companies that have grown their revenue with the NPS implementations have analyzed this data. And took actions to convert detractors to promoters while improving customer experience.

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4 Questions Product Managers Should Ask to Ensure a Stellar CX

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In today’s digital world, it’s no secret that delivering an excellent Customer Experience (CX) is paramount. Consumers have more choices available to them than ever before and have come to expect products that are easy to use and effective. Clients and customers want you to be good at anticipating their needs and solving their problems. Here are four questions product managers should ask to ensure a stellar CX.

Product managers are the driving force to guarantee quality and consistency in products and services.

Your Product Manager is behind projects from conception through delivery and support, which puts the full responsibility for CX on their shoulders.

Below are four questions product managers should ask themselves to make sure they’re delivering a solid customer experience and a product that meets users’ needs.

1. Do I really understand my customers?

Product managers always think they understand their customers: their goals, expectations, and the problems they’re seeking to solve.

Often that understanding of the customer isn’t as deep as the company believes it is. It’s easy for any group of people to fall into groupthink about customers, operating on their preconceptions rather than objective customer data.

Add in helpful feedback from non-objective observers like colleagues and senior management, and a team can easily go in the wrong direction.

A non-vetted-vote creates a high risk that you’ll need to go back and redo work. You may be rushing either before launch when you discover the problems, or even worse after launch when you don’t get the traction you expected.

The best way to control for this is to gain an in-depth, objective understanding of how your customers think and feel.

You can gain this understanding via frequent contact with fresh customers who haven’t been contaminated by talking with you previously. I prefer to do this through video rather than in person, for reasons that I’ll explain below.

Relying solely on quantitative data from surveys and analytics won’t cut it when you are searching for concrete data.

Your analytics will tell you what people are doing — but not what they’re thinking. Without human insight, you won’t be able to form high-quality hypotheses on what to build.

It’s important to mention that not all customers are created equal when it comes to obtaining feedback to help guide product design. Product managers need to speak with users who are representative of their customer base as a whole—not outliers sourced from support.

Your noisy people on social media may not be the best resource.

Twitter is not a market research tool — it’s an echo chamber for enthusiasts. Getting feedback from the average customer allows teams to develop products that address the most common challenges users contend with. In this way, you can find “standard” goals that most often you’ll be trying to accomplish.

2. Is engineering on board?

Once product managers have a clear understanding of customer needs, it’s time to make sure engineering understands what to build and why.

The aforementioned video feedback will prove useful here, giving engineers insights into what customers want—straight from the horse’s mouth.

The video feedback lets you align the team quickly, and head off the religious debates that can sometimes slow down a product team. Video feedback from customers is emotionally compelling and settles disputes quickly.

3. Are all of the project’s stakeholders aligned?

Having easy access to customer video feedback is also helpful for aligning all of a project’s stakeholders. Often product teams are bombarded with helpful advice from random employees, senior management, or maybe a sales rep who’s on fire after a single customer meeting.

Video feedback from customers aligns everyone by showing what users actually need, in their own words. This saves product managers the energy of having to explain why a product is being built in a certain way, a process that is usually slow and sometimes politically difficult.

4. Is my message being conveyed appropriately?

Customer feedback should also be shared with your customer-facing teams, especially marketing and sales.

In addition to sharing the initial video feedback that led you to design the product, product managers (or your product marketing people, if you have them) can go back to customers again and test their value proposition to see if it holds true.

Providing marketing and sales with insights on the problems they need to solve, and which features customers liked, ensure that the messages will reflect the real strengths and benefits of your product.

From there, these teams have a solid framework from which to develop content that will closely resonate with prospective customers.

Oftentimes, marketing and sales teams are presented with the task of marketing a product to customers without the added feedback and context you want them to have.

Sales may be successful in communicating certain selling points, but you’ll want them included and coordinated with the feedback so your results aren’t disjointed campaigns with materials that don’t do the product justice.


Qualitative customer feedback is the backbone of creating outstanding CX and proves to be valuable at nearly every step in the product development process. By keeping in mind these four crucial questions, product managers can keep their projects on the path to delivering a product that is tightly aligned with customer needs.

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Why You Should Measure Net Promoter Score (NPS)

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Many times, when I want to make big decisions like buying a new phone, any new gadgets, or investing in any mutual funds and share market — I always follow three rules. Might I suggest these rules to you? Here is why you should measure the net promoter score (NPS).

My rules for large or small decisions

First: I check other people’s recommendations on the websites. Second: I myself ask my friends, family, relatives, and my colleagues. Based on their thoughts about the product or service — Three: I take a couple of minutes — to think! Following these three simple rules — I can quickly make a firm decision.

Similarly, your customers may not even realize that they are following the same rules to make decisions.

Your family, friends and even customers buy products, services on the basis of the recommendations from other friends and relatives. According to a study, 83% of respondents said they trust recommendations from family and friends more than any other form of advertising.

It’s important for you and your business to know whether your customers are interested in your product or service. Start asking: who is recommending my products, services, and business brand to other people?

When you ask those questions — here is where the Net Promoter Score (NPS) metric can help you to track customers’ willingness to recommend your brand to others.

What is the Net Promoter Score?

Net Promoter Score is a leading customer feedback metric that helps you to gauge the customer experience, specifically customer loyalty and satisfaction. The Net Promoter Score can be achieved by conducting the Net Promoter Score Survey using the Net Promoter Score Survey Software (from zonkafeedback).

The zonkafeedback customer experience metric system was introduced by Fred Reichheld of Bain & Company in the year 2003  through his best-selling book named “The Ultimate Question: Driving Good Profits and True Growth.

How Net Promoter Score System Works?

The Net Promoter Score comes from the simple NPS Question: “How likely would you be to recommend our (PRODUCT/SERVICE/BRAND) to a friend or relative?�

With that question, the customers are provided with a score scale from 0 to 10 to range their willingness to recommend.

After that, the business will segregate their respondents or customers on the basis of nature (positive, negative, and neutral) of their scores and broadly categorized them into Detractors (who scored you from 0 to 6 ), Passives (who scored you 7-8), and Promoters (who scored you 9-10).

How to Calculate the Net Promoter Score?

The Net Promoter Score can be calculated by using the simple NPS formula where you have to subtract the total percentage of the detractors from the total percentage of the promoters. The Net Promoter Score number can range from -100 to 100.

You can also use an Online Net Promoter Score Calculator.

Net Promoter Score Formula = %Promoters – %Detractors

Why You Should Measure Net Promoter Score?

The Net Promoter Score is the quickest and easiest way to get a clear picture of your customer sentiments. It can further help you to identify the strengths and anomalies of your products or services and make it better and more customer-centric.

There are many reasons why you should be measuring your company’s Net Promoter Score:

  1. It measures customer loyalty
  2. It provides an instant indication of customer satisfaction
  3. It drives word-of-mouth traffic
  4. It leads to product improvement
  5. It enables to close the feedback loop
  6. It reduces customer churn rate

Here is what you can now base your business on:

  1. It Measures Customer Loyalty

Customer Loyalty refers to the customer sentiments or positive experience in which consumers express their satisfaction level achieved after using any product or service. Loyal customers will not only engage with your brand but also likely to choose your products and services consistently over other competitors.

According to the research report, 66% of US consumers make decisions based solely not on the product and its price, they are also considering the loyalty factor as well. They are willing to spend more on those brands to which they are loyal.

For example, there are lots of features in the iPhone that are similar to that of Android phones, but Apple loyalists will choose an iPhone despite it being priced higher than its competitors.

If you are choosing customer loyalty as a performance indicator, you need to take care of two things, first is choose an accurate way to measure it and second is the ways to control its fluctuation.

When it comes to measuring customer loyalty accurately, the Net Promoter Score and Churn Rate are two measuring metrics that can help you to drive accurate customer-powered data.

Calculate the Net Promoter Score

To check your customer loyalty, you can conduct the Net Promoter Score Survey among your customers. If they score their willingness to recommend your product/service/brand to others 9 or 10, then they are promoters and considered to be loyal customers. But if they score their willingness from 0 to 6 and 7-8, then they are detractors and passives respectively.

Measuring the Net Promoter Score can help you to identify your detractors and passives (kind of disloyal customers) and follow up with them to solve their issues. This helps you to improve your customer experience and turn your detractors or passives into promoters.

  1. It Provides an Instant Indication of Customer Satisfaction

It is clear that the NPS Survey gives you a concise understanding of the customer relationship with your brand. But along with the loyalty, NPS Survey also helps you to track instant customer satisfaction.

The Net Promoter Score Surveys can be conducted quickly after an event or transaction to track instant customer satisfaction. Let’s see, how?

Transactional NPS Survey helps you to gauge the real-time instant customer satisfaction immediately after the specific interaction or transaction or event like placing a new order, booking tickets, doing online payment and so on. The answer helps you to determine those things that caused an unpleasant experience for the customer.

There are different touchpoints in the customer experience journey where you can trigger the transactional NPS Questions and ask, “How would you rate our company on a recent experience?” Some example times to ask will be:

  • After Ticket or Call Raised – Once you conclude the call with the customers, you can send them a Transactional NPS Survey to determine whether they are satisfied with your interaction and support services or not? With this practice, you can also gauge the level of effort your customers are putting with your customer service agents to get their queries resolved.
  • Post-Order Survey – When your customers have placed a new order or completed any specific business transaction with you, always send them a transactional NPS survey via SMSes or Emails to track their real-time experience and customer satisfaction. Data collected through surveys can help you to streamline your product and customer strategies and improve the customer journey.
  • Post-Delivery SurveyPost delivery surveys are very important if you are an Ecommerce business owner or a restaurant dealing in food delivery service. You can share transactional NPS surveys either through SMSes or you can also encode QR Codes on the boxes or bills. Post-Delivery Surveys serve you with the key indicator to analyze your delivery & logistic services.
  1. It Drives Word-of-Mouth Traffic

In this competitive market space, driving customers to the business is the biggest challenge. It is important for a business to first focus on bringing new customers to the business and this can be achieved when your existing customers spread positive word-of-mouth for your brand. Here the Net Promoter Score Survey enters into the play.

It is already cleared that NPS Surveys data determine your detractors, passives, and promoters. But the whole thing revolves around how you are using the NPS survey data?

There are many ways to deploy NPS Survey data to get positive results. One among them is deploying the promoters’ scores, their positive word-of-mouth to build a strong brand image. When your promoters recommend your products/services/brand to their friends and relatives, they are indirectly quantifying the word-of-mouth traffic.

According to Nielsen’s latest Global Trust in Advertising report, 92% of consumers trust recommendations from their friends and relatives more than other mediums. Thus, online customer feedback and reviews have become the second most trusted source.

If you want to augment your word-of-mouth traffic, you need to get more and more promoters and for this, you need to conduct the NPS Surveys. If you are worried about detractors, then don’t worry, with the Net Promoter Score Survey Software, you can quickly follow up with them and solve their issues and improve their perception towards your business.

Quick Follow Up — Fix the Issue

Quick follow up helps you to turn your detractors to promoters. According to Lee Resources, 70% of detractors will do business with you again if you fix an issue they’ve complained about.

You can share the word-of-mouth (high Net Promoter Scores, positive feedback, recommendations) at different stages of the buyer’s journey including product consideration, evaluation, and purchase to develop the market and attract more new customers to the business.

  1. It Leads to the Product Improvement

Products or services need time to time up-gradation and improvement to survive in the competitive market wherein customers can quickly switch to the other brand if they are not satisfied. So, it is important for every business to check whether the products or services are performing well among customers or not?

Deploying Net Promoter Score Survey can help you to understand the negative side of your product and service. Real-time tracking helps you to upgrade and improve your products and services.


When it comes to surveying customers, NPS Survey system offers a two-part questionnaire:

  • Close-Ended NPS Survey Question – The Net Promoter Score question itself “How likely is it that you would recommend [Organization/Product/Service] to a friend or colleague?â€�
  • Follow Up NPS Survey Questions – These questions refer to the open-ended follow up questions where you ask the reasons for their scores.

We have different types of NPS Follow-Up Questions that can help you to go into the meat of the issues faced by your customers. Some best Follow-up NPS Survey Questions are:

  • What is the primary reason for the score?
  • What was missing or disappointing in your experience with us?
  • What do you like & dislike about (company or product name)?
  • How can we improve your experience?
  • How can we make you happier?
  • Logic-Skip Based NPS Questions

These questions help you to identify the strengths and anomalies associated with your products or services and quickly improve them to ensure a better customer experience.

It is not necessary that you can only approach your detractors with follow up questions. You can also effectively use the follow-up questions among your passives and promoters. In the case of passives, when you ask the reason for their scores, you’ll get to know the things that stop them from being promoters. This again provides you with scope to make your products or services better.

In the case of promoters, this helps you to understand the positive side of your products and services and make it even better.

  1. It Enables to Close the Feedback Loop

This is one of the most important strategies you should consider when you are deploying the Net Promoter Score System to follow up with your detractors. Why? Keeping your detractors unaddressed can be dangerous for your brand image and business growth.

Detractors usually not only give negative feedback and bad scores but also spread bad word of mouth for your brand. According to the study published on LinkedIn, 75% of consumers stated that they share a negative experience with their friends and colleagues, whereas 42% of them stated they’d recommend a product/service. The negative feedback has more impact on the mind than a positive one.

Addressing detractors and close the feedback loop is a healthy practice for your business.

When it comes to closing the feedback loop with your detractors, you need to understand the Customer Feedback Loop Anatomy. It helps you to identify and address each and every kind of issue of your customers. There are basically two types of customer issues in customer feedback loop anatomy:

  • Recurring Customer Issue – It refers to the common and general issue which happens with many customers. Say, if customers (guests) give feedback about the hotel’s washroom, its cleanliness, availability of toiletries, etc. These issues are considered to be recurring issues and are solved on the business level.
  • Personal Customer Issue – It refers to the issues that specifically happen with individuals. These issues are based on the personal opinion of the customers. These issues are solved by following up personally with the customers.

Once you understand this anatomy, it will help you to look at every nook and cranny of every concern of your detractors and swiftly solve them to improve their experience.

To close the negative feedback loop with detractors, first follow up with them personally, either through an email or through a personal phone call. You can open your conversation with the apology and then ask some really engaging questions like

What is the thing that they couldn’t find in your products and services?, How we can improve your experience, etc. These questions will help you to convince your detractors and coney them that you are really concerned to fix their issues.

Besides, personally following up with them, you need to make them feel very special. For this, you can provide them with some free giveaways like free products or service guides or you can also provide an extension of the free trial.

  1. It Reduces Customer Churn Rate

Determining the inflow (who stay in) and outflow (who go out) of the customers is very important for improving overall business growth. And with churn, forget about improving, you can’t even achieve the ground level of the business growth. So, start focusing on reducing Customer Churn Rate.

Customer Churn Rate refers to a business metric that enables you to calculate the number of customers who leave your business over a specific period of time. When you calculate your churn rate, you could able to find your churned customers. These churned customers provide constructive criticism that works as a great source of products, services or business improvement.

If you want to calculate the Customer Churn Rate, you can use the given formula:

Churn Rate % = Number of Churn Customers ÷ Total Number of Customers ✕ 100

Total Number of Customers = Number of existing customers + Number of acquired new customers – Number of churned customers

For example, say if you want to calculate the customer Churn Rate for a period of 30 days. Say, on day 1 you have 500 customers and during the next 30 days, you acquire 100 new customers. During the same 30 days, 10 of your existing 500 customers do not convert or cancel for whatever reason (assumed lost).

Customer Churn Rate = Number of Churn Customer Total customers ÷ (Number of existing customers + Number of acquired new customers – Number of churned customers) ✕ 100

Total Customers = 500 +100 -10 = 590

Therefore, 10 ÷ 590✕ 100 = 1.69%

So, Customer Churn Rate = 1.69%


Measuring and using your Net Promoter Score to the best advantage for your business will bring increased business and satisfaction.

The post Why You Should Measure Net Promoter Score (NPS) appeared first on ReadWrite.

customer engagement customer experience customer jouney map customer journey customer profile Customer Service

How Do You Create an Effective Journey Map for Your Customers?

journey map for customers

Customers have a lot in mind when they land on a website to purchase a product or service. Some expect to find the product they have in mind instantly, while others conduct thorough research before they purchase a product. Well, that’s not all. Some end up being fickle-minded and land with no product at all. Here is how to create an effective journey map for your customers.

Landing in the “no product at all” category makes it all the more crucial for marketers to study different customer-mindsets in-depth and learn how to create your customer’s persona.

That’s why experts recommend studying situations from the customer’s point of view; to anticipate what will be their next course of action. Only then can a marketer get answers to the following questions:

  • What is the root intent when one is looking for a solution to a problem?
  • Why did the customer choose your competitor over you?
  • How did they feel for the first time after using a product?

It will allow you to create a message that instantly captures attention, and finally work upon creating a customer journey map. But besides answering these questions, you need to follow the steps below to create a journey map successfully.

Understanding Your Customers

Do you come up with a lot of questions when trying to understand your customers?

“What encourages my customers to buy the product?�

“Why do they hesitate about purchasing our product?�

“What concerns do customers have when thinking of purchasing the product?�

Well, these questions arise when you do not understand your customer’s personality as their journey begins with your brand.

But to know this, to answer your “how to create a customer journey map� question, you need to understand them in the first place. And once you know them well, mapping the customer journey also becomes simpler.

In this section, we’ll help you to understand your customers in four easy-to-follow steps. So, let’s deep dive now!

Step #1: Gather Key Data

Did you know that 68% of customers prefer version A to version B?

But you’d only know this if you understand who your customers are.

So, to understand customers, you need to gather crucial data about them. For this, use channels like:

  • Landing page performance data.
  • Customer support tickets received via help desk software.
  • Incoming customer support chats.
  • CRM data such as customer’s name, email address, products or services purchased so far, and so on.
  • Search history of the knowledge base repository.
  • Customer behavior data via an analytics tool.
  • Current social media activities.

Such data allows your business to answer the questions mentioned above and, from there, help you customize and create a customer journey map.

Step #2: Speak With Colleagues

Another way to know your customers is to communicate with your co-workers who are in customer-facing roles every day. Communication with coworkers can include your support, sales, and marketing team insights on customer behavior during a product purchasing journey.

While sometimes it may seem to be a vague attempt, experience tends to help organizations understand customers better. Those who face customer requests every day would know:

  • Your target audience better.
  • How many stages should the customer journey be divided into?
  • How customers might end up behaving during support, sales, or marketing process?

Step #3: Send Out Surveys

Capture qualitative and quantitative data via surveys to get a holistic idea of a customer’s mindset. For this, send out customer satisfaction surveys and even Net Promoter Score (NPS surveys — like qualaroo dot com) to see where your brand stands.

Plus, you learn whether the existing customers are satisfied with your services or not.

Basically, the more data you collect, the more clarity you get on customers. And thus, it becomes easy to build an audience persona. In addition to this, you get to create a seamless customer journey mapping process.

Step #4: Develop a Target Audience Persona

With all the data in hand, time to develop a target audience persona. You can create personas like:

It’s no guesswork; you can build viable personas with the quantitative and qualitative data you gather. Once you create these personas, it becomes simpler to reach out to your target audience with effective marketing campaigns that end up increasing sales.

Understanding What Customers Go Through

You’ve understood how to identify customers and what affects them when interacting with your brand. It’s time that you understand their pain points at a deeper level.

91% of customers who are unhappy with a brand will leave without complaining — this is important to note.

As a customer-oriented organization like yours, you wouldn’t like to see this happening with your customers. That’s why you need to work upon the next customer journey stage to understand what your customers go through.

Doing so will allow you to create excellent customer journey mapping examples for upcoming teams at work hassle-free.

Step #5: Consideration Phase

As you complete the process of creating a target audience persona, you should dive deeper to learn what all things do your customers consider before making a purchase.

Make a list out their concerns, such as:

These help you create counter solutions that help you answer – what is customer journey mapping and how to simplify it further.

Step #6: Purchase Phase

As you map out this phase, you see the steps your customers take to complete the product purchasing process. Here your organization can identify the problem areas and provide solutions to improve sales.

Questions you should look into can be inclusive of:

  • When did the customer lose interest in the product?
  • Should we cut-short the check out process?
  • Should we add a live chat to create upsell opportunities?
  • Should we trigger help when we see an exit-intent?

Step #7: Retention Phase

Finally, track your retention strategies and monitor how many customers you successfully retain with their help. You’d learn about things that put your customers off and why they deviate from the purchasing process. This would allow your team to further upgrade existing strategies and actually retain customers.

Track what strategies worked out fine and which ones ended up losing more customers, only to refine the existing marketing and retention strategies.

In the End

It is important not just to understand the customers but also to carve their journeys with your brand. However, learning about their thought process is crucial for your business. That’s why you need to follow the aforementioned steps to:

  • Understand your customers using:
    • Different mediums to capture crucial data on customers
    • Information collected through colleagues
    • Surveys like customer satisfaction or NPS
    • Target audience persona
  • Understand customer thought process:
    • When they consider reasons for investing in your product or service
    • When they find compelling reasons to purchase your product
    • When they find your efforts impressive and helps your brand to retain customers effectively

Once understood, it becomes easier to come up with strategies that shape their journey with your brand. We hope these easy to follow steps help you create a customer journey map hassle-free.

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