When you talk of paid ads, business owners and marketers track metrics such as quality score, cost per click (CPC), and click-through rate (CTR). However, these metrics do not tell you everything.
If you have a high PPC conversion rate but do not have strong overall revenue, the problem may not be with your ad. It could be that your customers have decided to leave your business.
A metric that can help you in this regard is the PPC churn rate. Your PPC churn rate is defined as the total number of people who convert through paid ads but decided to end the relationship after buying or subscribing to your service or product.
Your PPC churn rate looks particularly at the customers who get converted from paid ads from platforms like Google ads.
Most PPC metrics depict how well your ads persuade people to purchase. For instance, conversion rates show how often individuals actually buy from your paid ads.
But, these metrics do not tell you a lot of things, such as:
Some of the things your PPC churn rate can tell you are:
All in all, you should care about the PPC churn rate because it can tell you a lot about your business. If you are not paying attention to why customers are leaving and in what numbers, you could simply be wasting away valuable ad spend on customers who won’t stay with you.
To calculate your PPC churn rate, here are the two things you should know:
The formula to use for calculating churn rate is:
For instance, let the number of customers of your business who converted from PPC ads at the start of the month be 100. Suppose your business lost 32 of those customers. Now, your PPC churn rate will be:
(32/100) x100 = 32%
If you calculate your PPC churn rate and get disappointing churn rate results, you must know different ways in which you can improve them.
Let’s discuss them one by one:
If you get a high PPC churn rate, then the first step that you need to take is to identify the reason for its higher value. This can pose quite a challenge as there is not an easy answer for this.
Begin by looking at things such as:
To find the cause, you can also perform UX testing and competitive analysis. Customer reviews can also point out where your customers seem to struggle.
If you can find what is causing a high churn rate, you can definitely take steps to lower it. But, if the cause still is not clear, there are some other strategies you can follow.
One of the best ways to decrease the churn rate is to ensure your customers are satisfied and happy. Some ways to improve customer loyalty are:
Try to foster a bond between your business and your customers by rewarding long-time customers. For instance, you can offer high-value customers a dedicated customer support line, early access to new features, and more.
Creating a community can provide you multiple advantages. One of the most significant benefits you get when you build a community is that it serves as a medium to interact with your customers. Creating a community also helps drive user-generated content, which is useful in your marketing efforts.
Create a place on platforms such as Slack, Reddit, and Facebook where your customers are able to create new friendships, get some valuable tips, and get a chance to interact with your team.
Poor customer service is one of the top reasons customers leave. Ensure that your customers don’t have to read laboriously through lengthy, terrible documentation to know how to use your service or tool. Make a video documentation or craft an easy-to-use FAQ. Also, think about using a chatbot to deliver timely customer service.
Always offer a convenient experience to your customers. They should be able to make a purchase easily, get the required information, and conveniently navigate your website. Doing so improves your customer loyalty as they can quickly get what they need.
Cancellation surveys are the same as employee exit interviews in a company. In an exit interview, you are asked why you are leaving the company and what steps the company can take to improve. This way, the company gets honest feedback about things such as management decisions and work culture.
Cancellation surveys are created with the same purpose. Knowing why customers aren’t sticking around gives you a chance to improve and prevents you from losing future customers.
When a person goes to cancel, attach a cancellation survey with just a handful of questions. For instance, when the person chooses “cancel,” a question box can appear and ask the person the reasons for leaving.
Tip: Ensure that the cancellation survey is easy to complete and offers multiple-choice questions. Refrain from giving too many choices as the person can feel overwhelmed and click away. Provide choices such as “too expensive” and “no longer require the service.” Also, create an “other” option along with an answer box for customers who wish to write detailed feedback.
Paid ads may persuade a customer to convert, but your onboarding process can decide how the customer feels about your business. Make sure your onboarding process is smooth. If individuals are confused regarding how to set up or use your service, you have a problem. If customers can’t fathom how to use certain features, your service or product may not provide them any value.
Some ways in which you can improve the process of onboarding are:
Tip: Make it a point to check your process of onboarding once every few months. This way, you can modify the things that aren’t working successfully.
Making customer service a priority helps in reducing your PPC churn rate. Customers are more willing to cancel if they struggle to reach your customer support.
Begin by replying quickly to posts and messages on paid ads. For instance, you ran a paid ad on Facebook for one of your products. Now, ensure that you respond to the requests and questions from customers in the comments.
When you respond, customers get the information they require. They also start to trust you more.
Some more tips that you can follow are:
If customers know they can rely on you to help them and they can easily contact you, there is a low chance they will cancel your service or product.
If your churn rate is high, start by figuring out why. Remember, your customers may want to leave for a number of reasons. Next, try to remain focused on customer loyalty. This means you need to create a smooth onboarding process and make it easy for customers to get in touch with you. Finally, ask the leaving customers the reason they don’t want to stick around anymore.
Note: If you need help with managing your client’s PPC Campaigns, DashClicks’ White Label Dashboard can help you. If you are an agency that wants a personal white label dashboard for PPC clients and is looking to manage things using automation, you can check out DashClicks’ White Label PPC. Sign up for the platform today. It’s completely free!