How to proactively prevent churn from materializing
Churn prediction can be a battle by itself, so you probably don’t want to hear that it is, in fact, only half the battle. Once you’ve predicted your churn accurately, the next step is to do something to positively affect those customers likely to churn.
1. Communicate value
There’s a whole host of reasons why a customer may be about to churn. One very simple, very common reason: they’re not being helped to get value out of your product. In these cases, communicating with a customer directly can be the best way to turn them from at-risk to satisfied.
Send email nudges to customers not getting the full value from products (i.e., overlooking features) or whose subscriptions are running out, leaving them at risk of delinquent churn. This can be managed easily from a well-optimized CRM or a good churn prediction integration.
2. Incentivize for retention
Promos, discounts, loyalty programs: they all help customers feel valued and wanted. It’s likely to help persuade them to stick around, particularly if your market competition is strong and you’re at risk of being undercut financially or while you’re working on feature updates.
Incentivizing is particularly important in preventing customers who may have unsatisfied needs from churning immediately. Incentives can buy you time while you fix performance issues or expand your service.
3. Analyze churn trends
Not even the best strategy is foolproof. Customers will still churn (though hopefully in hugely reduced numbers) whatever the success of your churn prediction. The key is to resist the urge to bury your head in the sand; look at those churn numbers and find out what went wrong with those customers.
An excellent strategy for churn analysis in general is to plan out your customer’s journey with your product. Once you’ve mapped out the main points, compare the customer’s journey with your churn data, and observe where the risk of churn is highest. Is it during on-boarding? After three months? After two years? After updates?
You can even appeal to customers who’ve churned for direct feedback. They may not feel like providing it, but any feedback of this kind that you can get is extremely valuable.
4. Automate churn reduction
If the whole prospect of putting together entire bespoke churn prediction solutions feels dizzying to you, then an integration aimed at helping you predict and reduce churn is a great fallback option. As we’ve seen, Paddle can command one of the best solutions of this kind on the market, replete with world-class subscription expertise with algorithms that leverage millions of data points to win back customers at exponential rates.