5 Churn analysis methods for PLG SaaS

?? You are NOT* measuring churn, that's why you have so many churn… ??

So wondering where to begin? ??

Here's how… ???

What methods can you use to measure and analyze churn?

1. Product Top 10 Method ??

2. Exit Surveys ??

3. At-Risk Team Check-ins ??

4. Cohort Analysis ??

5. Core Activity Engagement ??

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1?? Use the "Product Top 10" method ??

Get your customer facing team together

And list out 10 churn reasons

Whether its product improvements

Lack of features ??

Unsatisfactory support ??

Competitor pressure

Etc …

Who are the logos impacted by each

Quantify the $$$ amount ??

And then…

Go back to your executive team with this analysis ??

Influence the product roadmap ???

And the business decisions

2?? Exit Surveys & Calls ??

Its that straight forward

We conducted exit calls

Do a proper "post-mortem" ???♀?

Get your team together to learn why

What can we improve on

What could we have done instead ??

And which customer accounts have the same challenges

Prioritize these exit reasons ??

Always be learning ??

But you should be able to anticipate churn as they come ??

Not at the very end… ?

3?? At-Risk Team Check-ins ??

Meet with your team

Proactive outreach to customers with low engagement

Set tasks and reminders for you and your team ??

"Get to the fire before it starts" ??

Major mistake is not* talking to customers… ??

With the fear it reminded them to churn

The early you get in front of it ??♂?

The more time you can change their mind ??

4?? Cohort Analysis ??

Track the retention rate of your customers ??

When was their last login ???

If we track them by Month Active

How many consecutive months have they visited?

At which month they dropped off? ??

How many months did they stayed off?

Did they return? ??

Now consider a group of customers

How many customers you acquire in September… ??

Visited in October?

Visiting in November?

Are they "graduating" forward? ??

Understanding this pattern ??

Helps you figure out the blockers in the journey ??

Gives you some signals whats going on ??

But… still not enough ??

5?? Core Activity Engagement Analysis ??

Just because users visit…

Doesn't mean they did a core action

Monitor the actual usage ??

We assume core action = getting value

Are your customers getting value? ??

If they are not getting value

They are not using your core feature

Then…

They are likely to churn soon ??

Get them back on track

Help them realize the value of your tool

Ask them why they are not* performing the core action ??

This week, I wrote about PLG and Churn

1. OMG! 1?3 of PLG customers churned
2. The 5 reasons customers churn
3. How to do Churn Analysis for PLG
4. How to Report Churn to Leadership
5. Buffer has more than 5% churn rate. Whats your churn rate?

or https://www.youtube.com/@GaryYauChan/videos