Passive churn next steps
Feeling anxious about your involuntary churn?
You're not alone—nobody likes to see their customers quietly slipping away.
This article outlines key areas to address when your Churn Buster "Lost" list starts growing beyond your comfort level.
Lay a strong foundation
A strong foundation ensures no customers fall through the cracks unnoticed. Below are ideas to make sure this process is as leakproof as possible:
- Check for opens. Click into lost campaigns and see if at least one email has been opened. This indicates that notifications are being seen and ignored, versus there being a deliverability issue.
- Check for active cancellations. A cancellation spike in the Daily Breakdown Chart (at the bottom of the Dashboard) may indicate active cancellations being triggered on an account page, through customer outreach, or by request to the customer service team. Also check that proper subscription management tool settings aren't causing customers to inadvertently drop out of campaigns early.
- Review cancellation feedback. Cancellation reasons from customers can reveal patterns that point to ways to improve retention. Consider reaching out to a few customers personally to gain more insight into why they are opting not to renew the subscription, and use customer feedback to optimize your campaigns.
- Review email templates. Make sure at least one of your emails explains what the customer will *lose* by allowing their subscription to expire. After successfully delivering to the inbox (Churn Buster delivery rates are extremely high), this is often the highest impact element of a dunning email. While a marketing email encourages a prospect to opt in in order to gain something your company offers, a dunning email reminds customers about what they'll miss out on by not renewing and encourages them to not opt out.
Win back customers
Offering a late-campaign incentive can re-engage customers who are at a high risk of a passive cancellation.
- Consider a last-chance offer in the final campaign email — for example, including a coupon code or simply asking customers to reply to the email to claim the offer.
Retargeting customers after cancellation can be effective to win back lost customers.
- Campaign Lost events can be used to automate post-cancellation win-backs, or your can manually reach out to customers when you receive Campaign Lost email notifications.
Passive churn is partly a function of overall retention. From the customer's vantage point, look backward to all of the experiences they have had prior to the moment of payment failure. Refining the "upstream" experiences leads to high-impact retention gains that will show up in Churn Buster in months to come.
Here are some questions to evaluate the overall customer experience:
- Are you setting the right expectations upon signup (and before) that provide congruency and consistency throughout the customer lifecycle?
- How do you build value in the first 30 days of a subscription?
- What pre-defined moments provide an opportunity to continue building a relationship with the customer after the first month or two?
- Playing for Keeps — the Churn Buster retention podcast
- Retention Bites — our weekly newsletter with bite-sized tips and tactics
- What’s Up With Your Passive Churn? 10 Factors that Impact Customer Retention When Payments Fail
Passive churn is a grim reality for the subscription model. With a strong foundation in place and a focus on the overall customer experience, you can keep churn to an absolute minimum.