Yes, I Have an Alarm System, But….
One of the biggest reasons customers say they’ve cancelled their contract is because “they don’t use their system anymore.” Whether it’s due to an old or outdated system, a change in their needs, or they bought the wrong system in the first place, system non-use is a major factor driving both customer-initiated cancellations and cancellations for non-payment.
There are a couple of ways you can reduce the number of customers who stop using their system and end up cancelling, but the first and most important thing is to pay attention to this often-neglected-until-it’s-too-late-scenario.
The best way to combat this potential problem is to concentrate a good portion of your market effort on regular communication with current customers rather than spending all your efforts and energy finding new ones. Use e-mail, newsletters, bill inserts, blogs, and social media to continually communicate three important messages that will keep your customers “activated” and prevent them from falling out of love with their system:
1. Remind them WHY they purchased: Using real customer scenarios, and showing through an anecdotal story, how a customer had a tangible result based on using your alarm system is the best way to capture the attention of someone who has slumped into a pattern of non-use. (Find out more about how to tell a good sales story here. In fact, there’s even more evidence that “strangers with experience” have become a more important component than ever when it comes to making choices. This survey shows how consumer trust has changed from 1997 to 2007, and that these important resources have moved into the second spot, over the media, bloggers, and a company’s own advertising!
2. Show them HOW to get more value: Demonstrate how other services you offer, such as monitored smoke detectors, carbon monoxide monitoring, and/or water detection monitoring system, provide important value even if a customer doesn’t use the intrusion portion of the alarm.
3. Help them navigate lifestyle changes: By communicating with them about regional trends and lifestyle changes they may be dealing with can assure them that they are not alone. For example, a half-century ago, only 2.8 percent of Americans older than 50 were divorced. By 2011, according to the Census Bureau’s American Community Survey, 15.4 percent were divorced. With divorce often comes a feeling of insecurity about the perils of living alone. Communicating with your customers about these topics may trigger an opportunity to open up a dialogue and allow you to become a trusted source for helping them feel more comfortable.
Finally, make sure you keep upgrading your product and service mix to ensure that an old or outdated system isn’t the root cause. No amount of communication will compensate for a system that’s become obsolete.