The traditional way to find recoverable revenue
Preventing churn and encouraging revenue retention requires more than just thoughts and prayers. Traditionally, companies use the following process to reduce their churn rates.
1. Find patterns in churn
The first step in reducing churn is observation. Take a good, hard look at your customers’ behavior and find different variables that may be contributing to churn. This could be a number of things from onboarding completion to usage amount.
2. Consistently check for data patterns
Now that you have identified some signs indicating a person is about to churn, be alert to when those signs show up. Check in on your data each week to see if any warning signs of customer churn have emerged and make sure it’s backed up to provide your team visibility.
3. Look for expiring credit cards
A customer with an expired credit card on their account cannot pay you. When you aren’t looking for churn variables, you can look for credit cards that are about to expire so you can save the customer the trouble of having their card declined. In the process, sell them on your product or service. In the end, you’ll have a renewed customer with a valid credit card.
4. When potential churn is found, start dunning
You’ve looked at the data, crunched the numbers, and found customers who could potentially churn—now it’s time to stop them. Send dunning and post-dunning emails in order to keep customers activated. A drip campaign could be useful in this stage in the process.
5. Start to reach out personally
If your email campaigns and other churn prevention techniques haven’t worked, get personal. It doesn’t hurt to send out a personalized email or schedule a video meeting to see why a customer’s usage time is down. In addition to potentially retaining one more customer, you could gain insight beyond what you’ve gleaned from your data.
6. Recover the customer
If you’ve followed these churn management steps correctly, you should be able to recover the customer and their revenue. Do this for as many customers as possible and you’ll be well on your way to revenue recovery for your business.