When it comes to lead management and CRM, the churn rate of a given company’s database is an important indicator of how healthy is their digital marketing strategy and sales process.
In the case of B2B marketing and sales, especially in Software as a Service (SaaS) companies, database health and churn rate reduction is a priority.
Basically, churn is the measure of contacts you lose as a result of a send, says HubSpot.
Imagine you’re the newly appointed CMO of a SaaS company, and you receive a marketing & sales portfolio with 4,600 subscribers to your blogs and email campaigns.
At the end of the year, your numbers are a shock: you closed the year with 3,500 subscribers.
That’s a 24% churn rate. It means that 1 out of 4 people on your database chose not to hear from you again. HubSpot says that an average contact database decay amounts to 22.5% a year.
Is your boss mad? No, he’s rather disappointed. But he puts you on the spot with a simple question:
“What are you going to do about it?”
Well? What’s your game plan?
Looking at the large numbers won’t help at all. You’ll need to dive into the specifics of your churn rates.
There are three ways you can lose contacts:
You have a serious problem. You’re doing something wrong.
You may think that a good delivery rate is enough to say “job well done.” But it’s not.
There may be people there who haven’t clicked on your emails for a long time. Worse, they may not be opening them either.
These are contacts who are unengaged, and may eventually unsubscribe or, worse again, get tired of you and mark you as spam. Make sure you keep them on track.
When you find out that people are simply not responding, you may need to take some serious action. What kind of contact are they?
Make sure you have figured that out, so you can start a re-engagement campaign to simply say: “We’ve missed you. Is everything OK with you? Is the content we’re sending you relevant?”.
Make sure you don’t send the same copy to leads, customers or former customers.
How do you delight customers?
Make sure you’re sending them relevant information and your company is available for any post-sales advice. What’s more important, they may soon need to renew their subscription. Are they OK with your software or considering parting ways?
Keyword optimization is not restricted to a search engine.
Perhaps your copy works for one segment, but not another one. Where is the content more relevant?
Imagine you’re a SaaS for doctors to optimize their appointments. But you have no doctors, nurses or anyone in health in your contact list. Are you converting patients instead? You need to change your content, fast.
Check where are your leads checking you out from.
For most of us, it would be just perfect to hit the “send” button and go home .
Personally, there is a time of the day or evening where I’m most prone to checking my emails: when I drink my morning coffee, after lunchtime and before I get out of the office.
But people’s timing is different, depending on their preferences, working habits and, most importantly, their time zone. What time is it in Beijing?
Are you sending the right content at the appropriate time and frequency? You’d better run some tests.
Some psychologists claim that people’s favorite word is their own name. Is yours?
Make sure that your communication addresses your leads particular information, as they put it on their sign-up form: their location, position, interests, etc.
That way, you can also segment your contact database to the stage of the buyer’s journey, their role within the company, or the content preferences they may have placed on a form.
How is your churn rate? What are you doing to reduce it?
My name is Izzy and I am a co-founder of CRM Toolbox, an award-winning HubSpot Solutions Partner. I lead our team of consultants who provide professional guidance to help businesses implement the HubSpot CRM platform migrate, integrate their tech stack to HubSpot to create a seamless environment for sales reps to use. There is nothing I love more than solving the challenges that come up when someone wants to migrate an old system or integrate their tech stack with HubSpot - it's like a puzzle!
The best information about inbound marketing, sales, guides and migrations.