If you’ve got a subscription business, you probably know that churn is your worst enemy. It’s also the biggest lever you can pull for growth.
Andrew Michael of Hotjar and host of his his own podcast, Churn.FM, sits down with Ramli on the Growth Marketing Today podcast to talk churn and retention.
- Battling churn and retaining users is the hardest thing for subscription business
- Churn is the anti growth in a subscription business. Goal is to try and grow and expand company and biggest lever for growth is retention. It drives acquisition loops, drives monetization, accelerates payback of money invested into paid channels.
- Churn rates vary wildly by business, market, stage etc. Difficult to benchmark.
- It's a great north star metric because of influence across other SaaS metrics.
- Lowering friction at point of purchase or onboarding might not be a good thing - you want customers that are going to stick around so don't skip steps. Get onboarding right - you're not just optimizing for "Aha!" but making sure they know how to use the product inside and out.
- Finding the right customer profile - who are the ones not churning? Find more of them.
- Find out why customers are churning. Ask them.