Make Your Customers Stay: 6 Behavioral Tips to Increase Customer Retention (part 2)

Behavioral economic tips to nudge customers to stay

People can get really emotional sometimes. These emotions can lead your customers to making unwanted decisions - for example to cancel your service. But you can use this emotional tension to your advantage and persuade them to stay. Here are another three tips on how to do it.

In this article, you’ll discover:

  • How to work with customers’ emotions in order to persuade them
  • What the worst feeling is that your customer can have when deciding about your service
  • Why creating a feeling of safety is crucial for customer retention
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It wasn't that long ago that the business world suddenly turned upside down. If you’re a small business owner, you probably felt threatened too. And if you’re a part of a retention team, the phone almost certainly never stopped ringing. 

Why? Because people got scared that they would lose their jobs due to lockdown. And when it comes to financial decisions, they don't go together with fear very well. It nudges people to make quick and often unreasoned decisions. So, in the hope of saving money, customers started to cancel services. 

As you may have read in our earlier article looking at the first three retention tips, we are often irrational anyway, even when there is no crisis on the horizon. So without further ado let's look at another three tips you can use to increase customer retention.

6 behavioral economic tips to increase customer retention (part 1)
  • Article
Make Your Customers Stay: 6 Behavioral Tips to Increase Customer Retention (part 1)

4. Give the customer time to rethink

The thing is, we are emotional beings. We all know firsthand that when we let anger flow, we can say a lot of things we’re not proud of later on. Our decisions are also often influenced by the heat of the moment, including ones like canceling a service. Luckily, there's a phenomenon called the “cooling off period”. 

All you need to do is to give customers some time before making their final decision. The goal is to slow the customers down and make them think.

This method has been applied by several countries in order to reduce divorce rates, as they assumed that many requests were made under the influence of strong emotions. According to a study by researcher Jungmin Lee, a 3-week cooling-off period reduced the divorce rate in South Korea by about 10%. That's a lot of saved marriages!

It's rather simple - all you need to do is to give customers some time before making their final decision. The goal is to slow the customers down and make them think. There's a chance that they will “cool off”, meaning the emotion will fade and they will be more likely to continue using your service. 

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