The return of Zephr Coffee Club, after one week off, brought us a session on reducing churn. This is a very hot topic at the moment, with the incredible growth in subscriptions that COVID-19 has brought for lots of top tier publishing and media companies.
Why do people churn?
Voluntary Churn - maybe they had issues with the service, maybe they're not using it enough, maybe they cannot afford it anymore or maybe they just became bored with it.
Involuntary Churn - maybe they don’t have the balance in their account to pay when the transaction is processed or maybe their card has expired and they haven’t provided the updated details.
However, doesn't matter how we look at it, churn is churn, and that means revenue lost!
7 Top Tips for Reducing Churn
1. Dynamic Off-boarding - Create a Customer Journey for ‘Off-Boarding’
- Customer’s request to unsubscribe
- Trigger Journey - Why do you want to leave messaging
- Give Reason - i.e. Too Expensive
- Call bespoke offer to save % for next X months
2. Subscription Holiday's
- Temporary Loss of Revenue
- Cheaper Re-Acquisition (Reduced CAC)
- Better than a full churn
3. Card Updates
- Estimated ⅓ of cards expire every year
- Leverage auto updater within your payment provider
- Notify users that they need to update earlier than needed
4. Customised Journey's
- Segment the users
- Give a different experience
- Focus on the messaging
- Maybe try an offer
- Ensure they’re getting value and using the product
- Ensure the experience is great!
5. Use Propensity to Churn (and Buy!) algorithms
- Work with all of your data
- Analyse it with your data teams
- Create Propensity Models
- Use technology to predict propensity to churn (and buy)
- Apply personalised journeys
- Customise messaging and views
6. Focus on who stays!
- Ask yourself: “What is retaining these numbers?”
- Figure out why people remain subscribed to your content
- Flip the mindset
7. Keep a Premium Edge
- Asking for more money for better services doesn’t necessarily mean doom for your revenue.
- Birchbox and Netflix are great examples. Movies can be acquired for free in “different means,” but people flock to Netflix for their ease of use and unbeatable service regardless.
- It shouldn’t be a race to the bottom, rather a race to providing the best all of the time to stay highly competitive.
If you want to join us at Zephr Coffee Club, or maybe you have a subject/talk you would like to present, please get involved and send an email to email@example.com - we’d be delighted to have you join us!