I/ Churn analysis done right
Key elements to consider when doing your Churn analysis:
1_ Type of churn:
Which part of the churn can be considered as regrettable (ex: passive churn, active churn..) and which part considered as non-regrettable (ex: happy churn)?
which type of clients is canceling their subscriptions?
And on the other hand; which type of clients are we more easily renewing?
3_ Revenue churn Vs User churn
The key focus on revenue churn, but when doing a churn analysis the number of User churn also has to be considered. Salesmachine offers both options.
And the churn analysis will allow you to take some significant actions in the future, for instance;
limit your churn
avoid bad-fit customers and redefine your Ideal customers
win-back some lost customers
forecast your future churn
upgrade your customer experience
review your Marketing / Sales strategy
II/ Set your main churn reasons in the Churn module
The Solution allows you to define your main churn reasons and provide a specific color. Then, for each new churned Account, you can indicate a detailed description of the churn reason.
The most common churn reasons can be grouped under these topics;
the client did not reach its desired outcomes
did not perceive enough value
customer goes out of business
product problems (e.g. bugs, missing feature..)
loss of your internal promoter (e.g. key users, champions, etc..)
If you were not expecting it, it's crucial to contact the churning customer as soon as possible, in order to;
1- try to retain him (offering a temporary discount, subscription pause, etc..)
2- to ask the churn reasons
For this purpose, you can have a Playbook triggered in Salesmachine to warn the CSM in charge and create a task for him to get in touch with the client.
Consider also that it is extremely important to get the "real" churn reasons from your customers. Therefore by asking them right in the middle of their cancellation process, you might have some rushed and undetailed reasons, such as "budget issue, etc.." to get you out of their way.
So, when choosing the most appropriate churn reason for each customer, it's pretty useful to ask yourself the 3 key questions below:
what are the churn reasons the customer provided to me?
what do I think the real reasons could be?
what the metrics and actions I track from this customer are telling me?
Taking a step back, and thorough consideration of these three elements should help you to obtain a more precise churn reason for each customer, to apply in the corresponding Salesmachine attribute: "churn reason", and all the additional comments will be indicated in "churn comment".
Finally, take into account that some customers might not provide their churn reason, so it will be valuable to have one of your churn reason value indicating "other" or "undefined".