In what categories do you categorise your customer churns into?

Anshaj Goyal
4 replies
Let's say a customer dropped after 3 days of normal usage. What would be the key metrics you understand in order to figure out why did customer churn? Example: Poor Onboarding, Overwhelming product etc.

Replies

Alexis Khvatov
Customer churn is a hot topic among entrepreneurs nowadays, and rightly so; it's important to understand who we are losing and why in order to improve our services. When classifying customer churns, I focus on categorizing them into three distinct categories: authentication-, engagement- and negative experience-related churns. Authentication-related churns can be defined as customers who fail one or more authentication processes. This often happens when the system requirements have changed and the customer hasn't caught up yet. Engagement-related churns, while users have successfully authenticated themselves, are those customers who lack an emotional connection with our product or service; these customers need to be stimulated in order for them to stay. Lastly, churns based on negative experiences arise from situations over which we have little control; a bug may cause a user to defect or any action (even unknowingly) might cause us to lose them. Understanding how customers choose to leave our organization, we not only gain valuable insight into their needs but also understand how our failures -- intentional or unintentional -- can cost us dearly in terms of potential revenue. Keep powerfully moving forward!
Aditya Rajput
If it is a subscription business, we can categorize customers based on the number of months of an active subscription. This can further be divided into the specific point where the customer was stuck a maximum number of times or the categories of their support requests.
PM Optimizer
Do you mean churn as a canceled subscription or that the user didn't come back? If you mean the first option, it's best to ask an open question with some required amount of characters to give reasons why they left. We're gathering the churn reasons in this way and I must say it's sometimes enlightening.
Shashank Sanjay
@pm_optimizer I've had difficulty with turning user responses into actionable priorities. Did you have a similar issue? If so how did you resolve it?