How to stop Churn?

One of the biggest problems faced today by any company is the Churn.

Churn is the attrition of the customers, who stooped doing business with us.

So, how do we go about solving this issue?

First thing First

• Narrow down the problem - Cross off the Customers from the list and focus on the main customers

• Almost nobody ever closes a Free account. They just stop transacting. So we needed to look at accounts that “go dark.” By the time customers cancel it’s too late! They may have given up on your product months or years earlier - look for behavioral churn

• Off the list - Not addressable base, bad first experience with the product (Onboarding/Activation Problem), Non-Regrettable Churn (Customers Blocked by us), False Positive (Customers who have a pattern of coming back on the platform after some periodicity)

• 80% of the revenue will come from 20% of the customers (Focus area to start with)

• Look at history - risk, compliance customer service, etc

• Make Bucket of "Killer Scenario" - For Predictive Churn Model

• Check on the customers who fall under these "Killer Scenario"

Summary -

     1. Focus on behavioral churn, cancellation is too late

     2. Separate activation from retention - use different fixes

     3. Focus only on addressable & regretted

     4. Account churn vs. revenue churn - is your revenue concentrated?

     5. Then, dig into the details!