How to Reduce Churn Rate Using Zoho

Every business is unique. Every business operates differently. But every business thrives on one thing – customers who stay with you for the long-term. The recurring revenue from these customers helps you to continue your business smoothly. The percent of customers who leave you for any reason is called churn rate. Customer churn has a significant impact on your business revenue and bottom line.

According to a recent study, 1 in 26 unhappy customers will complain about your services and the rest will churn. And, according to Zoho, the higher the churn rate, the greater the negative effect on your business. Reducing churn rate might sound like a big undertaking but if you fail to do so, then it could lower your profits and impede growth.

A study by Bain & Company found that a 5% increase in customer retention has the potential to increase revenue by 25-95%. So your focus should be to retain the existing customers if you want to reduce churn percentage. The below churn reduction model from Zoho shows that if you reduce your churn rate from 5% to 1%, you could increase the number of customers by approximately 4x.

With these findings in mind, let’s check out how you can use Zoho CRM, Zoho Subscriptions, and other Zoho products to reduce the churn rate.

How to Reduce Churn Rate Using Zoho

1. Use Zoho Subscriptions’ Revenue Forecaster

To maximize the growth of your business, you need concrete revenue goals. Zoho Subscriptions’ revenue forecaster tool helps you know how much your business will grow in the coming months or years. Enter your MRR, revenue churn, revenue churn and projection time in the respective fields and get the reports in seconds. It helps you calculate the projected revenue of your business.


Once you know what’s your revenue goals, you can act accordingly. You can stop investing more time and money on acquiring new customers through advertising, and invest your efforts in reducing customer churn.

Zoho Subscriptions provides an intuitive dashboard with a long list of subscription metrics. You can get financial reports on net revenue and invoice details, and activity-based reports for API usage and activity logs. When you have a clear understanding of your subscription billing, customer behavior, transactions, churn, and all the events related to a particular subscription, you can easily make your customers happy and increase revenue.

2. Improve Customer Experience with Zoho CRM Plus

Customers churn for a number of reasons, but they are unique to each customer. If your business offers the most cost-effective solutions and the right product fit for your customers but still they are churning, then the problem lies with customer experience.

When customers find it difficult to connect with your company through a support team, social media, marketing content or sales managers, they are likely to leave for a better service provider where they will feel valued and get positive experiences.

Zoho CRM Plus offers a unified customer experience platform that you can utilize to offer exceptional customer experiences.

Zoho CRM Plus provides your customer-facing teams and sales managers with the proper toolset that helps them keep customers at the center of everything they do. The platform enables your team to provide omnichannel engagement and seamlessly connect with users across all channels, be it phone, email, live chat, surveys, and social media.

# The SalesSignals tool in Zoho CRM Plus provides real-time notifications about your customer activity, so you can have meaningful conversations across different channels.

# Its powerful social publishing tools allow you to instantly have meaningful interactions with full customer context.

# Your customer support team can improve their activities with features like ticket management, canned responses, SLAs, and knowledge base.

# Embed personalized surveys to your emails or website to get customer feedback and make informed decisions.

# Personalize emails based on customer information and target the content and timing of your emails to better engage with users after a sale.

# Zia, available in Zoho CRM Plus, is Zoho’s AI-powered intelligent assistant. It can serve your customers who are looking for help. Zia Voice helps customers to connect with your business over the phone and get their issues resolved, without taking any help from your agents.

3. Train Customers with the help of Zoho Meeting

Customer training is essential if you want them to be successful in using your product or service. 68% of trained customers use products more often. This means training helps them to gain more value from their subscription or purchase. They face fewer problems with your service and they had to rely less on your customer support team. Customer training combined with better customer engagement can reduce your churn rate.

Do you know by Zoho has a low churn rate? It has the lowest churn rate in the CRM industry at 3.1%. Because it provides affordable, reliable, high-quality CRM solutions. Another reason for higher loyalty in Zoho customers is Zoho partner engagement. Zoho Authorized Partners, like First Direct Corp, train customers and help them maximize the value and insight on how to better use Zoho. First Direct Corp offers Zoho CRM consulting services

Zoho Meeting is an online meeting software that helps you organize webinars and connect with your customers. You can set up presentations, online meetings, polls, and Q&A sessions to better engage with them. These engagement activities could drive your renewal rates, subscriptions, upgrades, and adoption. Customer training via Zoho Meeting can also improve customer relationships and customer satisfaction, which may open up revenue streams for your business.

4. Increase customer retention rate using Zoho CRM

Why focus on customer retention? According to the Pareto 80-20 Rule, a company’s 80% of profit comes from its 20% of customers. This means the higher the retention rate, the higher the profit percentage. Zoho CRM can help you create powerful retention strategies using your Zoho CRM platform.

Zoho CRM is the goldmine for customer intelligence. Create customer analytics reports using Zoho CRM’s Reports and Analytics tools to identify high-value customers. These are the customers who are making regular purchases. Target your email marketing and advertising campaigns toward them. Create personalized discounts and deals based on their account usage to cross-sell and up-sell. Determine the customers who are at the risk of churning out. Engage with them via training tools and Zoho CRM Plus to make them stick with you for a long time.

Good products build fans but if you provide good services, it will earn you their loyalty. Use Zoho Contact Manager to refine your communication channels, approach, and engagement tactics. This Zoho tool lets you manage your customers in one place. From meetings, notes, campaigns, surveys, emails, feedback to social communication, Zoho Contact Manager helps you foster strong relationships with customers. Strong relationship results in loyalty and positive word of mouth.


Every business deals with customer churn at some point. Understanding the reasons behind churn and building strategies to reduce it are the way to go forward. Use Zoho CRM and Zoho products to build the most successful customer churn reduction strategies. Hire Zoho CRM consulting services provider like First Direct Corp. They have Zoho experts and necessary skills to ensure your Zoho project is implemented properly. Plus, you can learn about the rich functionalities of Zoho from First Direct’s experts and utilize them for better customer engagement and satisfaction.

Contact First Direct Corp to learn more about their Zoho CRM consulting services and training facilities.

Bob Ritter


(845) 221-3800