A guide to reducing customer churn

A guide to reducing customer churn

Types of churn

• Voluntary satisfied churn: Users disengage because the product satisfies their needs.
• Voluntary unsatisfied churn: Users disengage because the product doesn't satisfy their needs.
• Involuntary churn: Users disengage due to payment and login issues.

Pre-churn strategies

• Habit reinforcement: Boost users' outcomes before they figure out how to sustainably achieve them on their own.
• Outcome boost: Increase the perceived value of staying by incentivizing users to continue using the product.
• Cancellation flows: Propose other use cases to keep users engaged.

Limit payment issues

• Reduce restrictions: Consider whether you really need certain data for payment processing.
• Optimize fraud classification: Avoid marking legit transactions as fraudulent.
• Offer different payment methods: Provide more options to increase the chance of user return.

Post-churn strategies

• Reactivation: Bring users back to the same use case they churned from during periods of high willingness to pay.
• Resurrection to a new use case: Introduce users to a different use case that may better meet their needs.