Most likely, your app has a “cancel” button.
When customers click it, you permanently lose them.
The client of Lincoln Murphy faced the same problem.
But after he used one trick, they immediately noticed a 15% decrease in churn.
Following customers’ clicks on the “cancel” button, they did the following:
- emphasised the value they will lose (along with data, history, etc.)
- presented downsells
- Provided the option to suspend an account for “x” months (particularly useful in cases of seasonal volatility).
- After they failed to cancel, they were flagged as a churn threat and contacted once more.
As a result, churn was immediately reduced by 15%.
This is a big accomplishment given that, as you may recall, a 5% improvement in retention can raise revenues by as much as 95%.
Source : Sixteen Ventures, Inc.