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Churn Management in 3 Key Steps

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    Home / User Onboarding / Churn Management in 3 Key Steps

    If you know how to keep them, you keep 'em 📢

    This was what my previous manager told me right before getting into an exit interview.

    I was there to keep notes for a new article (for my own sake) but I actually learned a lot.

    I listened to the rather complex topics they broke down, how they took them into consideration, and wrote down the whole conversation in a set of bullet points.

    I could just tell you these points that took most of our time post-interview, but trust me, it's neither that short NOR pointless.

    Because acquiring new customers can be five to 25 times more expensive than retaining existing ones - all facts.

    That's why, in this article of mine, I'll be telling you all about churn management, from the identification process to conducting interviews.

    For starters, effective churn management revolves around three key steps:

    • identifying risks,
    • targeting customers at risk,
    • and being proactive to eliminate future risks.

    Let's explore the actionable steps and strategies businesses can employ to effectively manage churn, starting with how to identify churn risks:

    Step 1 - Identify Risks 🔎

    ‎Identifying churn risks is the cornerstone of effective churn management.

    This initial step involves a detailed analysis of customer behavior, engagement patterns, and feedback to pinpoint potential churn triggers.

    Here are four ways businesses can systematically identify churn risks:

    1. Analyze Customer Data

    To analyze customer data, I can get you started by recommending a data analytics platform, such as Google Analytics, Mixpanel, or Amplitude. These platforms help you track customer usage patterns. Key metrics to monitor include:

    • Frequency of use
    • Engagement duration
    • Feature adoption rates

    The second method includes segmenting your customer base by behavior, product usage, and demographic factors to identify groups with higher churn rates.

    Last but not least, you can make use of predictive modeling tools to forecast potential churn based on historical data. Nowadays, machine learning algorithms are so enabling that they can uncover hidden patterns and predict future churn risks with significant accuracy.

    2. Monitor Customer Feedback

    Monitoring customer feedback has never been easier 💪 This is thanks to survey tools like SurveyMonkey or Typeform that help you gather direct feedback from customers about their experience and satisfaction levels.

    You can always opt for lending an ear to social media platforms, if you wish.

    For example, platforms like Brand24 or Hootsuite allow businesses to monitor brand mentions and customer sentiment across social media — which helps you see the early warning signs of dissatisfaction.

    Another road you can take is to regularly measure NPS (Net Promoter Score) to gauge customer loyalty and identify customers who are detractors, as they are more likely to churn.

    3. Track Customer Support Interactions

    One thing I know is that reviewing customer support tickets for recurring issues or complaints helps many things.

    But here, I'd like to mention what it means for customer support interactions since high volumes of tickets related to the same issue can be a significant churn indicator.

    Also, keep in mind that long response times and unresolved issues are major red flags. You might want to use customer support software like Zendesk or Freshdesk to track these metrics and keep your resolution rate high.

    4. Conduct Churn Interviews

    Even though it's hard to see a customer go, exit interviews can be a small gift that means a lot.

    That's why when customers decide to leave, you should ask for their feedback. Understanding their reasons for churning can provide valuable insights into systemic issues.

    Another interview type that you should look out for is engagement interviews since conducting proactive interviews helps you understand their concerns and improve their experience before they decide to leave.

    This goes for at-risk customers identified through data analysis, just so you know.

    By taking these actionable steps, businesses can identify churn risks with greater precision and develop targeted strategies to lessen these risks effectively.

    Plus, implementing a structured approach to churn risk identification not only helps in retaining at-risk customers but also enhances the overall customer experience.

    All these steps contribute to stronger loyalty and reduced churn rates over time.

    Step 2 - Target Customers at Risk 🚨

    ‎After identifying customers at risk of churning, the next crucial step is to target these customers with strategies aimed at improving their satisfaction and loyalty.

    This stage requires a tailored approach, utilizing direct engagement and personalized experiences to address their concerns effectively. Here's how to complete this step:

    1. Personalize Communication

    One of the greatest ways to personalize customer interactions is by utilizing email marketing platforms like Mailchimp or Constant Contact.

    Platforms like these send personalized emails to at-risk customers, offering special promotions, helpful resources, or simply asking for feedback.

    We cannot skip personalized offers when talking about personalizing communication.

    And personalized offers are pretty hard to resist.

    During this step, you can use data analytics to determine what might appeal to different segments before you start sending out offers based on customer behavior and purchase history.

    2. Enhance Customer Support

    If your customer support game is good, great, but that doesn't end there.

    Your at-risk customers might need special treatment where you offer priority customer support to make them feel valued. This could mean faster response times or access to a dedicated support representative.

    What more you can do is follow up on issues after a support interaction to show that you care about their experience.

    3. Improve Product Engagement

    On the road that leads to improved product experience, you must pass the door of in-app messaging.

    Tools like Intercom or Drift might aid the process by allowing for targeted in-app messages or prompts to engage users directly within your product —which guides them toward features they might not be utilizing.

    This one was for a more satisfactory feature exploration, but for the users who haven't fully engaged with your product, you might try onboarding reboot that highlights features or uses they might have missed.

    4. Offer Educational Resources

    Educational resources are where your customers' hearts lie because they might need assistance anytime, especially when giving your product the first go.

    That's why creating or highlighting existing tutorials, webinars, or guides can help customers get more value from your product.

    And for high-value customers showing signs of churn, you should go for assigning a dedicated account manager who can provide them with a go-to person for all their needs and concerns.

    5. Leverage Customer Feedback

    Customer feedback is the king 👑

    Show that you are listening to your customer's feedback by making noticeable changes or improvements in your product or service.

    If you're also transparent in fixes and updates, you get one more point.

    Because communicating openly about the improvements or fixes you are implementing based on customer feedback through newsletters, product update logs, or direct emails strengthens the bonds between customers and you.

    By adopting these strategies, you can significantly improve the satisfaction of customers at risk of churning.

    It's about showing these customers that their feedback and business are valued and that you are committed to providing them with the best possible experience.

    This proactive approach not only helps in retaining customers but also reinforces the overall brand loyalty and reputation.

    Step 3 - Be Proactive, Take No Risks 📈

    ‎The final step in churn management is to adopt a proactive stance—eliminating the root causes of customer dissatisfaction to prevent churn before it even happens.

    This forward-thinking approach leverages insights gathered from the previous steps to refine and improve the product and customer experience continuously. Here's how to make it happen:

    1. Analyze Data for Root Causes

    The first stop you have to make here is the data you collect from analytics tools, customer feedback, and support interactions to identify common themes or issues leading to churn.

    Also, you can map out the customer journey to pinpoint where customers face difficulties or disengage, which would highlight areas for improvement across the product or service.

    2. Implement Systemic Changes

    Based on feedback and analytics, you should prioritize product features or fixes that address the most significant pain points for customers.

    Don't forget that sometimes churn is driven by service issues or policies (e.g., billing practices). Make sure to review and adjust these to be more customer-friendly.

    3. Foster a Customer-Centric Culture

    Customer-centric culture is the key that opens many doors 🔑

    Ensuring all team members understand the value of customer satisfaction and how their role plays a part in preventing churn goes through employee training.

    A very internal way to earn this approach is by cross-departmental collaboration.

    So, try encouraging collaboration between departments (e.g., product development, customer service, marketing) to ensure a unified approach to enhancing the customer experience.

    4. Utilize Feedback Loops


    Say it for the ones at the back 📣

    To stay ahead of potential dissatisfaction, you should implement a continuous cycle of getting and acting on customer feedback.

    Also, it doesn't kill to stay in the loop with customers.

    When changes are made based on customer feedback, communicate these back to the customers who raised the issues, showing that their input has led to real improvements.

    5. Innovate and Evolve

    Always stay ahead of market trends; that's forever the motto.

    Keep an eye on industry trends and emerging customer needs to ensure your product or service evolves to meet future customer expectations.

    You should always keep the door open for changes, which sometimes derive from continuous learning and adaptation.

    For example, adopting a mindset of continuous improvement, learning from each customer interaction, and using those lessons to refine your approach to churn management might help you out when enhancing the overall customer experience and building stronger, more lasting relationships with your customers.

    To Sum Up

    Churn management is an ongoing process that centers on enhancing customer satisfaction and loyalty.

    By identifying risks, engaging at-risk customers, and proactively addressing underlying issues, businesses can significantly eliminate churn.

    Remember, the goal is to continually adapt and refine your strategies based on customer feedback and insights

    As you move forward, integrate these practices into your business model to nurture a more engaged and loyal customer base.

    Stay engaged for future insights on elevating customer experiences not just to minimize churn but to boost brand advocates.

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