How to reduce churn

From Manage Customer Success to Reduce Churn by David Skok:

This much is obvious: if you want to stop your customers from churning, you will need to make them happy with your product/service. However what is less well understood is what makes a happy customer? Many SaaS companies believe this comes from engagement and usage of the product.

However I believe they are on the wrong track, and I’d like to move the conversation to a higher plane. Customers bought your product to get a clear business benefit. To make them happy, I believe that you need to make sure they are getting the business benefits they hoped for.

6 thoughts on “How to reduce churn

  1. I believe this is true and that many product managers are hyper-focused on usage statistics even though they only tell part of the story. I think the reason for this is because usage and engagement are highly measurable, whereas, tracking if your subscribers are getting the business benefits they hoped for is much less quantifiable. Any ideas how to better measure the latter?

  2. The old fashioned way… Just reach out to your users with a customer satisfaction survey containing mostly open questions: what do you like? what do you not like? how would you improve the service? etc. as well as a few closed questions such as on a scale of 1-5, does feature X help you do Y? etc. Also, set a few direct customer phone calls – after 10 of those you’ll know where you stand.

  3. Pingback: How you should think about churn | A Founder's Notebook

  4. Pingback: How to reduce churn– a process | A Founder's Notebook

  5. Pingback: How to reduce churn by identifying your “red flag metrics” | A Founder's Notebook

  6. Pingback: Why revenue retention is the wrong operating metric to combat churn | A Founder's Notebook

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