Category Archives for "Churn"

How to Use Content to Reduce Churn

It’s every subscription business’s goal to keep churn as low as possible. Churn — the percentage of customers you lose every month — can be tough to beat, and it can ruin your bottom line. Of course, there are reasons for losing a customer that are completely out of your control. If someone doesn’t have the money for your product, or can’t use it because of where their business is at right now, then they’re not a good fit for the product at this point. Outside of instances like that, people generally fall off because of one of two reasons: Engagement (or lack thereof) Understanding (or in this case, not understanding) the value of your product Everything from customer experience […]

How to Track and Reduce Your Involuntary Churn

If you’ve been in the subscription business for a while, you’re no stranger to involuntary churn — or the desire to reduce it. Even as a new business owner, you probably know churn is something you’ll deal with regularly, voluntary or not. Luckily, there are steps you can take to reduce involuntary churn. However, you can’t set a goal to reduce involuntary churn until you know where you’re starting from. After all, “what gets measured gets improved,” as Peter Drucker, author of The Effective Executive, famously said. In other words, step one to reducing churn is to track it. How else can you know whether you’ve improved? …And involuntary churn is? (A refresher)  Churn comes in two flavors: voluntary and involuntary. […]

The Profit Leak You Might Not Be Tracking – And How to Fix It

When you’re running a subscription business, churn is just part of the game. Granted, you want it to be as low as possible, and you probably work hard on reducing your churn month to month…but do you pay attention to your involuntary churn? While you’ll never be able to entirely eliminate churn — involuntary or not — you can decrease it as much as possible. In particular, involuntary churn, when a previously happy customer is lost due to circumstances like an expired credit card or declined transaction, is typically preventable. And not only is it preventable…it’s potentially costing you much more money than you’ve realized. On average, most debit and credit cards issued expire after three years, with some US […]