We know it's worrying when your taxi company starts losing customers, but it's very common. According to Statista, most businesses have had to deal with customer churn, with retail businesses reaching 25%. Despite being common, many businesses lose 1.6 million a year due to this. This is why it is of utmost importance to take care of your clients while you still have them.
What is customer rotation?
Customer churn is basically the number of customers that companies lose during an exact period of time. This involves certain calculations, for example, if you start with 2000 clients and then lose 50 in the next 2 months, you will have the rate. In this case the result would be a customer churn rate of 2.5%, but this is not that simple.
Businesses that regularly gain and lose customers may not worry about customer churn, especially if everything is going well monetarily. Growth periods often mask the fact that customers are thinking about competition. So you have to be very careful with the levels of satisfaction so as not to realize this when it is too late.
The leaky bucket effect
This may sound strange to you, but this effect is nothing more than the loss of customers while others are gained. It is called this way because whether you fill the bucket with water or customers, the leaks from them are a loss. It is not the solution to keep pouring water, the best thing is to keep your clients covering the holes.
Normal churn rate at your taxi company
As expected, the best customer retention rate is amounts close to 0%. Consequently, this rate and the dropout rate will depend on the size of the company. In addition to the amount of time you have been running in your niche. An established business usually has lower churn rates since it is well known and its customers know what to expect.
Why is it important to track customer churn?
Having a measure of customer churn in your taxi company is essential to avoid inefficient management. A department must be assigned to address the problem and determine how many customers are leaving and why. Thus avoiding allocating resources to get many more customers that will not be worth it. We will give you the reasons why retaining them is as profitable as gaining new customers.
The chances are higher that your existing clients will use your services again. They already know your business so they are interested in trying out new offers.
Retained customers are an almost captive audience to fully consume the services you offer.
You do not have to invest larger amounts in advertising to attract new customers.
Having regular customers who make transactions regularly allows for stable financial planning.
Customers who are loyal are the ones who will recommend you and defend your brand.
Tips to reduce customer churn
Como ya te mencionamos anteriormente las tasas de abandono son más comunes que sean altas en empresas nuevas. Así que si estás empezando o estás teniendo este problema lee con atención nuestros consejos.
Reward their loyalty
There is nothing better to retain customers in your taxi company than offering incentives that will show them how valuable they are. These can be discounts, gifts, codes to redeem coupons, among other incentives that are useful. If you want to maximize their reach, it is recommended to run advertising campaigns and engage with them.
Feedback is a priority
Previously, surveys were sent by email and calls, but that is obsolete. Social media has taken an important position to replace the old methods. Now surveys are uploaded on Instagram and Facebook stories, Newsletters are also used so that interested parties can subscribe completely free of charge.
Place calls to action in your posts that invite them to comment, value their comments by responding kindly. Temkin Group discovered that 77% of customers would recommend a service to a friend based on a single positive experience. With these suggestions you will be able to know how to modify offers and procedures to provide better service, increasing satisfaction and loyalty.
Provide dream customer service
There must be workers within your company available to serve customers. That they provide the best possible support, so that customers feel that their questions, concerns or complaints are relevant, by responding to them as soon as possible. If they have problems with your service, you are always available to offer them an apology and, if you can, compensation for your mistake.
Poor customer service would convince 39% of people not to use a service again, according to research from New Voice Media. As there are different types of clients, you must have different forms of communication with them. Many prefer to use chatbots to help them resolve the issue, while others look to speak to a person for a quick and effective resolution.
Each of your clients is important
Ruby Newell-Legner's clarifies that it takes 12 positive customer experiences to make up for one negative experience. So avoid damaging your reputation by giving little importance to those who have been loyal to your taxi company. Start implementing these valuable tips and you will see that your customer churn will be considerably reduced.