Churn Deflection Model to Fix Your Leaking Bucket

Customer dissatisfaction, the poor performance of KPIs like MRR, ARR, and LTV, and negative impacts on bottom lines indicate a leaking bucket.

A leaking bucket means a company’s customers keep cancelling their subscriptions. And two of the most commonly used strategies for churn deflection are:

• Offer discounts, coupons, and vouchers
• Acquire more customers

Also, when it comes to customer churn, even a slight improvement matters because it directly links with the flow of recurring revenue streams.

For instance, if the churn of a SaaS company was 20%, and somehow it succeeded in bringing it down to 19%, then it is an achievement. When this percentage is converted into the dollars saved by saving a customer, the amount comes out to be convincing enough.

That’s the very reason nothing horrifies subscription business retailers more than customer churn. Currently, if you are also facing churn-related issues, then we have a churn deflection model that will surely help you out.

Also Read: How to Control High Customer Churn with SaaS Customer Retention Management – RetentionFlow App

The Churn Deflection Model

The importance of customer retention is always emphasized in the subscription business market because Retention is the cornerstone of the subscription business model. Here, if the customer base is leaky, you cannot opt for the strategy to focus on customer acquisition. Why?

The market is already competitive. So, nothing can help you but customer retention. Rather than focusing on new customers and winning your competitor’s customers, first, you need to retain whom you already have.

Here is the model that SubscriptionFlow experts suggest, and our automated system helps in implementing this model.

1. Customer Data Analysis

To nip the issue of customer churn, first, you need to identify the churn intent of the customer. And to know this intent, you need to delve into customer data. It is important to track all customer activities. You will be able to identify what customers like and like the most. When customer activity falls, it is the first clear indication of those customers who are about to churn. SubscriptionFlow’s churn deflection model and application are based on in-depth customer data analysis.

2. Identify Usage Patterns

The customer activity does not remain the same throughout its journey. Sometimes, customers are active and sometimes they are like in hibernation. Studies tell, in most cases, this phase of hibernation leads to customer churn. However, when customer data is tracked, the usage of your SaaS product will identify all those customers who have comparatively less activity. You can come up with offers and discounts based on their previous activity so that these customers can be re-engaged.

3. Identify Customers at Risk

Based on the risk factor, you can segregate customers, meaning, either the customer is on the verge of subscription cancellations, low-risk customers who might leave in some time, and those who are in a safe zone and loyal to you.

4. Improve Customer Service Interactions

When you are done with identifying the customer segment, there comes the stage to engage your customer service team. Tell them to communicate with the segment of customers that can cancel subscriptions at any time. Also, curate discounts and loyalty programs to keep these customers on board. Do not send too frequent calls and emails. Keep your tone normal. Ask for customer feedback. Schedule emails and messages that you need to send to these customers. It is tiring to do that manually. So, it is better to have automated retention management software to manage this retention activity for you.

Also Read: Retention Management with SubscriptionFlow – A Platform Where You Get Modified Features for Your SaaS

5. Proactive Measures

Last but not the least, you should be proactive to deal with customer churn rates. As a subscription retailer, you need to devise a plan and execute this plan before the customer actually leaves. The foremost measure should be to optimize customer experience by going towards personalized experience for your customers.

Offering personalized offers can even be helpful in stopping your customers who are at high risk of cancelling subscriptions.

Let us take you to the details of how SubscriptionFlow will help users in churn deflection.

SubscriptionFlow’s Churn Deflection System

Now that we have emphasized enough how important is the factor of customer churn, it is time to unveil how the automated platform of SubscriptionFlow caters to this issue.

SubscriptionFlow offers RetentionFlow which is a customer retention application. While using our platform, users can adopt this application to fight their increasing churn rate. Here, they can track the complete customer journey. This tracking helps in finding the customer intent. Based on the customer data, the customer health score will automatically be calculated.

Also Read: 10 Most Important Customer Success Metrics for SaaS Subscription Businesses

Here, the customers will be segregated based on their Health Scores:

• Customers in the red zone meaning those who are about to leave
• Customers in the yellow zone meaning the chances of these customers to churn are comparatively less
• Customers in the green zone are those who are safe, they are going to stay with you for a longer duration

Now that customers are segregated, you will know how to strategize for them so as to retain them. Make a note of this you can never avoid customer churn to 100%, However, you can minimize it.

What you need to do is to set churn deflection targets.

Achieve these targets.

Set new targets and plan to now achieve new churn deflection targets. And that’s it! It is the best way to deflect churn as much as possible.

Customer retention features and the application of SubscriptionFlow are quite convincing. You can also try our churn deflection software. And for that, you just need to schedule a demo for SubscriptionFlow.