Churn guide:Â
How to prevent churn with 20 best practices
Our churn prevention guide provides you with quick, smart and customer-centric tips how to avoid and reduce churn and remove friction from your subscription journeys.
Read in our guide:
- How to deal with voluntary and involuntary churn
- How to increase checkout conversions
- How to deal with failed payments
- How to leverage discounts & free trials
- How to let your customers choose their subscription journey
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Dealing with churn
Churn prevention for subscription businesses
Churn is part of any subscription business and is not always a bad thing (a customer on a really cheap legacy plan who requires a lot of support might actually reduce costs once they churn).
As part of churn management, churn prevention requires different steps from analytics to technical optimization to communication. In our guide, we provide tips for different aspects to reduce, prevent and avoid churn and how to apply them for quick and long-term wins.
One of the first steps is to identify churn touchpoints and differentiate between voluntary and involuntary churn.
Voluntary churn: a customer actively cancels their subscription or membership.
Involuntary churn: a subscription gets cancelled due to late or failed payments or other technical issues
Read in our guide, how to deal with the different types of customer churn to avoid needless churn due to failed payments.
Keeping an eye on your churn metrics
Measuring, evaluating & acting
To gain control over your churn rate, you need to know which metrics to monitor, what customer touchpoints to optimize and how to let your customers decide their next steps.
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By tracking all necessary metrics, you will also be able to put numbers to the potential savings for churn reduction.
One of our customers, Nordisk Film+, has stated that an improvement of their churn rate by just 0,5% can already increase the lifetime value of their customers by 30€ per person. This shows that even small measures can have a huge impact on your MRR and ARR.
70%
of payments can be recovered by sending payment reminders instead of cancelling or pausing a subscription.* Â
Communication is key
The right message can increase retention
A crucial part of your customer relationships is how transparently you communicate with them. This does not just relate to marketing communication but also includes transactional emails and messages that provide information about late payments, next-steps in case of issues, and cancellation procedures.
And sometimes, optimizing a process to reduce the amount of transactional emails can further increase retention since it also removes friction.
When to communicate more:
- send payment and other reminders to recover revenue
- inform customers about the end of their subscriptions
- be transparent about price increases
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When to optimize processes to communicate less:
- Use automatic credit card updates to reduce failed payments
- Offer self-service to manage payments and contracts
- Make pausation and cancellation easy (read in our guide why this matters)
Lower your churn rate
Download our churn prevention guide and receive 20 hacks that will increase your customer retention, reduce cancellations and keep your customers happy.