How are you offsetting seasonal churn in your business?
We’re in the part of the year where churn can start creeping up.
For us, summer can be weird.
People travel more.
Kids are home.
Budgets get tighter.
Some customers pause because they think they’ll “just handle it themselves for a while.”
Then a few weeks later the yard gets away from them again.
I’ve been thinking a lot about how to reduce that churn before it happens instead of only reacting after someone cancels.
A few things we’re working on right now:
- bulk prepayment offers
- more customer engagement through our physical newsletter
- promoting add-on services
- reactivation campaigns for past clients
- downselling instead of immediately accepting cancellations
The downselling piece has been important.
If a customer reaches out to cancel because of finances, I don’t always want the only option to be “stay or leave.”
Sometimes there’s a middle option.
For example, moving them to a lower frequency for a season may keep the relationship alive and still keep their yard from getting completely out of control.
That’s better than losing them entirely and having to reacquire them later.
We’re also sending more prepayment offers because it helps with cash flow and gives customers a reason to commit ahead of time.
The physical newsletter has helped too.
It keeps the relationship warmer.
Customers hear from us outside of invoices, appointment reminders, and service texts. That matters because recurring customers are easier to lose when the business only talks to them transactionally.
I’m also paying more attention to which customers are most at risk of canceling:
- price-sensitive customers
- lower-frequency customers
- customers who pause seasonally
- people who have recently had schedule changes
- customers who haven’t used add-on services
- past clients who canceled but may still need help
This is one of those areas where I think service businesses need more than just new leads.
You need a retention plan.
What are you doing to offset seasonal churn before customers cancel?