Step #4: Develop a hypothesis and rank ideas
Now you know where your opportunities for improving churn lie; it’s time to turn them into tests and prioritize those tests by the impact they might have on your churn. Prioritizing or ranking your ideas is important before you start testing since not all ideas have the same impact, and not all customers are worth the same.
1. Prioritize customers who can be saved
Don’t spend all your resources on customers who will end up leaving anyway.
2. Prioritize customers by value
Not every customer is valued the same. If most of your churn is coming from freemium users, it’s worth your while to go the extra mile only for those who are paying you.
3. Rank your retention experiments by their probable impact on churn
This can be as simple as marking the probability of success (low, medium, or high), the resources needed (small, medium, or large), and the potential impact (low, medium, or high).
These are the ideas and experiments that you can move through your process quickly, generating data and learning. You can run through them quickly with little effort, and they will yield results.
Here's an example of a low-effort, high-impact tactic. Writing tool Grammarly uses regular writing activity emails to encourage users to continue finding value in its app. Each email includes writing stats from the previous week, achievement badges to encourage users to create a writing streak, and upsells for Grammarly’s premium service.
Automated emails like this don’t take long to write and implement—but they can have a big impact on churn rates.