How to Lower PPC Churn Rates
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.
Why Should You Check PPC Churn Rate?
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:
- Are customers unhappy with your products or service?
- Does your ad focus on features your customers care about the most?
- How well does your onboarding process works?
Some of the things your PPC churn rate can tell you are:
- If your customer service isn’t good
- If you have a confusing documentation
- How well your onboarding process works
- Whether the expectations of customers match your service or product
- Whether your competitors provide a feature that you do not
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.
How to Calculate Your PPC Churn Rate?
To calculate your PPC churn rate, here are the two things you should know:
- The number of customers who signed up from your PPC ads.
- The number of customers from paid ads you lost by the month’s end.
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%
Strategies To Help You Lower Your PPC Churn Rate
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:
Identifying Why Your PPC Churn Rate Is Higher
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:
- Do you give documentation?
- Do you have outdated software?
- Are there any problems with your product’s quality?
- Do you have a customer service strategy?
- Does your competitor offer a better solution or feature?
- How is your onboarding process?
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.
How To Lower PPC Churn Rate With the Help Of Customer Loyalty?
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:
1. Provide Loyalty Rewards
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.
2. Create a Community
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.
3. Focus on Customer Service
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.
4. Make it Easy For Your Customers
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.
5. Attach A Cancellation Survey When People Choose To Cancel
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.
6. Create a Smooth Onboarding Process
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:
- Make the entire process easy for your customers: Make your documents in a way that your customers easily understand. Also, do not forget to label them.
- Ask your customer’s preferred contact method: Ask their preferred contact method. Some customers prefer the phone while others may prefer email. Also, as your customers may live in different time zones, ensure you know when to contact them.
- Provide tips: Make it a point to let your customers know how to make the most of your product or tool. For this, you can create an automated email campaign that offers tips and tutorials.
- Only ask for information you require: Some information is essential to ask, like a customer’s email address and language preference. But, think before asking for some other information from them such as a physical address, company name, etc. Doing so is important because you don’t want to annoy your customers.
- Don’t Rush It: You may want to explain how amazing your service or tool is right away. But, introducing too many features at the same time can overwhelm your customers. Instead, you can use spaced-out emails and triggered popup boxes to talk about the features over time. Begin by engaging your customers and then tell them about the extra features when they are at a stage where they want to learn more.
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.
7. Make It Easy For Them to Contact You
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:
- Ensure that your contact information is clearly shown on your website and important landing pages.
- In your PPC ad, provide the phone number or email address of your customer service.
- Put in place a chatbot to give answers to questions that are frequently asked.
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.
Wrapping It Up
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.
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