5 churn analysis methods

Why you have so many churn??? 😂

Author

Gary Chan
November 15, 2024

🚨 You are NOT* measuring churn, that's why you have so many churn… 😂

So wondering where to begin? 🤔

Here's how… 🛠️

What methods can you use to measure and analyze churn?

1. Product Top 10 Method 🏆

2. Exit Surveys 📝

3. At-Risk Team Check-ins 🚨

4. Cohort Analysis 📈

5. Core Activity Engagement 🎯

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1️⃣ Use the "Product Top 10" Method

Gather your customer-facing team and list out the top ten reasons for churn. Consider factors such as product improvements, lack of features, unsatisfactory support, competitor pressure, and more. Identify which customers are affected by each reason and quantify the financial impact.

Once you have this analysis, present it to your executive team to influence the product roadmap and inform business decisions.

2️⃣ Conduct Exit Surveys and Calls

This process is straightforward. Conduct exit calls and perform a thorough post-mortem with your team to understand why customers are leaving. Discuss what improvements can be made and explore alternative actions that could have retained these customers. Identify accounts facing similar challenges and prioritize these exit reasons.

Always be learning from this feedback, and aim to anticipate churn as it arises rather than waiting until it's too late.

3️⃣ Implement At-Risk Team Check-ins

Schedule regular meetings with your team to proactively reach out to customers showing low engagement. Set tasks and reminders for follow-ups. It’s crucial to address potential churn before it escalates.

One major mistake is avoiding conversations with customers out of fear that it might remind them of their intent to leave. The sooner you engage with them, the more opportunity you have to change their perspective.

4️⃣ Perform Cohort Analysis

Track the retention rates of your customers by monitoring their last login dates. Assess how many consecutive months they have been active and identify when they dropped off. Consider how many customers acquired in a specific month continued to engage in subsequent months.

Understanding these patterns will help you identify blockers in the customer journey and provide insights into what may be going wrong.

5️⃣ Analyze Core Activity Engagement

Just because users visit your platform doesn’t mean they are engaging with core features. Monitor actual usage closely. If customers are not deriving value from your product, they are likely to churn soon.Take proactive steps to re-engage these users by helping them realize the value of your tool. Ask them directly why they are not performing essential actions within the platform.

By implementing these strategies, you can better measure and analyze churn, ultimately leading to improved customer retention and satisfaction.

This week, I wrote about PLG and Churn

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I am Gary Yau Chan. 3x Head of Growth. Product Growth specialist. 26x hackathon winner. I write about #PLG and #BuildInPublic. Please follow me on LinkedIn, or read about what you can hire me for on my Notion page.