Building Trust and Reducing Friction with Customers

Good Communication Habits: Building Trust and Reducing Friction with Customers

As business owners, our goal is to create an experience that not only delivers value to our customers but also builds trust and fosters long-term relationships. Good communication habits are the cornerstone of achieving that. Unfortunately, poor communication—or a complete lack thereof—can erode trust, frustrate customers, and even drive them away. Let’s explore why this matters so much and how we can implement practices that keep customers happy and engaged.

Case in Point: The Unwelcome Surprise of an Unannounced Rebill

Imagine this: a customer signs up for an annual subscription to your service. A year later, without any reminder or notice, their card is charged again for the subscription. The customer wasn’t expecting it, doesn’t remember agreeing to it, and now feels blindsided. Even if your terms of service clearly state that the subscription is auto-renewing, the lack of communication creates a negative experience. It’s like showing up to a party uninvited—awkward and unwanted.

Wouldn’t the customer feel better if they received a friendly reminder a week or two in advance, letting them know their subscription is about to renew? This simple act of communication can transform a potential point of friction into an opportunity to demonstrate transparency and respect for your customer.

This Is What Happened to Me Recently

A couple of weeks ago, I was doing my usual check of my bank account—a daily habit to stay on top of things. That’s when I noticed a charge for $197 from a company I didn’t recognize. If you’ve ever had a card compromised, you know the wave of panic that hits you in that moment. The name on the charge seemed like it could be related to a service I might use for my business, but it wasn’t one I remembered signing up for. So, I started digging through my emails, searching for any mention of the company. At first, nothing came up.

Frustrated and concerned, I contacted my bank and reported the charge as fraudulent. I know now that might not have been the best move right away, but it was my gut reaction. After a bit more Googling and searching through old emails, I discovered that it was, in fact, a service I had signed up for during a trial period to check it out. Apparently, the trial automatically rolled over into a yearly subscription. Here’s the kicker—I had received zero communication from the company about the trial ending, no tips or strategies for using their service, and no notification about the upcoming billing. Not a great experience all around.

The Cost of Silence: Cancellation Rates and Customer Dissatisfaction

Studies have shown that businesses that fail to communicate upcoming rebills often experience higher cancellation rates and lower customer satisfaction. According to a report by Gartner, nearly 60% of customers who cancel recurring services cite “lack of communication” as a major factor. Additionally, a survey conducted by McKinsey found that proactive communication can reduce churn by up to 15%.

When customers feel blindsided, their immediate reaction is often frustration or distrust. In today’s connected world, that frustration doesn’t just stay between you and the customer. Negative reviews, social media posts, and word-of-mouth complaints can harm your reputation—a ripple effect no business can afford.

Building Better Communication Habits

Good communication habits don’t just happen by chance. They require intentionality and a customer-first mindset. Here are some practical tips to help you build trust and improve the customer experience:

1. Set Clear Expectations from the Start

From the moment a customer interacts with your business, be upfront about what they can expect. If you’re offering a subscription service, make it crystal clear whether it’s auto-renewing. Include this information during sign-up, in the confirmation email, and in your terms of service. Transparency at the outset sets the tone for a positive relationship. You might also include how the charge will appear on their bank statement.

2. Use Friendly, Timely Reminders

A reminder email before a recurring charge is due is a simple yet effective way to show customers you care. Here’s what a good reminder email should include:

• The date of the upcoming charge
• The amount that will be charged
• A link to manage their subscription (e.g., to update payment details, cancel, or change their plan)
• A friendly, helpful tone that conveys respect for their time and money

3. Automate Communication Without Losing the Personal Touch

Leverage tools like email marketing platforms to automate reminders, but ensure they still feel personal. Use the customer’s name, reference their specific subscription, and customize the language to reflect your brand’s personality. In this communication you could provide case studies, usage examples and even schedule out a renewal reminder 360 days from the day they purchased the annual subscription.

4. Provide Multiple Channels for Support

If a customer has questions about their subscription, make it easy for them to get answers. Whether it’s live chat, email, or phone support, accessibility can make a huge difference in how customers perceive your business.

5. Ask for Feedback and Act on It

After a renewal, follow up with a quick survey to gauge customer satisfaction. Did they find the reminder helpful? Is there anything you can improve? Listening to your customers not only helps you refine your processes but also makes them feel valued.

The Long-Term Benefits of Proactive Communication

When you prioritize communication, you’re not just preventing cancellations—you’re building a foundation of trust. Customers who feel informed and respected are more likely to:

• Renew their subscriptions year after year
• Recommend your business to friends and family
• Leave positive reviews and testimonials

Proactive communication also helps you stand out in a crowded market. Many businesses overlook this aspect, so going the extra mile can make a big impression.

Real-World Success Stories

Take Netflix, for example. The streaming giant sends out reminder emails when your free trial is about to end or when your subscription is up for renewal. By doing so, they not only comply with regulations but also build goodwill with customers. It’s a small gesture that reinforces their commitment to transparency.

Another example is Chewy, the pet supplies company. Chewy’s proactive communication about subscription refills and their approachable customer service has earned them a loyal customer base. Customers rave about how easy it is to adjust their orders or get assistance, and this positive experience drives retention.

Avoiding Common Pitfalls

While good communication habits can elevate your business, poor execution can backfire. Here are a few pitfalls to avoid:

• Overwhelming Customers with Emails: Too many notifications can be just as frustrating as too few. Find the right balance.
• Using Jargon or Confusing Language: Keep your communication simple and clear. Customers shouldn’t have to decode your emails.
• Ignoring Feedback: If customers point out issues with your communication, take it seriously and make improvements.

Final Thoughts: Communication as a Competitive Advantage

In an age where customers have endless options, the way you communicate can set you apart from the competition. By prioritizing transparency, respect, and a customer-first mindset, you can build stronger relationships, reduce churn, and create advocates for your brand.

Remember, it’s not just about avoiding complaints—it’s about creating a positive, memorable experience that keeps customers coming back. And it all starts with good communication habits.