You probably have the “cancel” button within your app.
Customers click it and you lose them forever.
Lincoln Murphy’s client had the same issue.
But after he applied one trick – they saw an immediate 15% reduction in churn.
Here’s what they did, after customers clicked the “cancel” button:
1. Reminded them of the value they’ll lose (along with data, history, etc.)
2. Offered down-sells.
3. Offered the ability to hibernate an account for ‘x’ months (especially good where there’s seasonal volatility).
4. When they didn’t cancel, marked them as a churn threat and reached out to re-engage.
Result:
An immediate 15% reduction in churn.
This is a huge result considering the fact that (as you remember) a 5% increase in retention increases profits by up to 95%? 😉
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