ANDRE SIMON DAVOODI

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Slow Growth Revisiting Churn

Differentiated Ways of Looking at Churn

When thinking about churn companies often will look at it from various perspectives. A gross revenue number just looks at revenue lost across the entire customer base. A net revenue number includes the additional revenue gained from expansion, up-sell, and cross-sell efforts. And a logo churn number looks at how many customers were lost in the aggregate without looking at revenue figure at all

You can slice and dice your churn metrics in many different ways, the key however remains the same, make sure that each segment within your Churn Segementation Model (C) (TM) is providing you with a unique and actionable insight to help improve your organic revenue growth numbers

Better Customer Segmentation

Not all customers are created equal. Most companies will find the customer base splits out into a few key segments. New customers acquired recently, recent defined by a single cycle of your contract term. Existing long-term customers and the customers that are virtually guaranteed to renew and expand the relationship with you because your product/service is essential to them. The remaining customers falling somewhere in the middle

The Major Reasons Why Customers Churn

Once you have split out the customer base into three key segments, you should start identifying the top one or two reasons why customers churn in the first place. By getting a better grasp of the select few reasons why customers churn, you can take actions to mitigate those reasons early and long before the customer is ever at risk of churning

Churn Starts with Product Market Fit

Identifying the market segments that derive the most value from your product or service is critical to mitigating churn downstream. It doesnt matter how good your sales process is if the ROI or benefits gained form your product or service simply are not a fit for the particular market segment you are targeting. By building out a robust, Customer Segmentation Model (C) (TM), at the top of the funnel, you will do wonders for your sales process and your retention metrics downstream

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