If you ask customers why they churn or even Google for common churn reasons, you will get thousands of different answers.<\/p>\n
Worse, none of these are actionable or give any valuable lesson for product management<\/a>.<\/strong><\/p>\n But I\u2019ve found three global root causes of customers leaving a business. These are also problems that you can work on, fix, and track to prevent churn in the long term.<\/p>\n So let\u2019s explore:<\/p>\n Before we get started, think about whether you truly have a churn problem.<\/p>\n Determining when to investigate churn reasons depends largely on which type of churn impacts your business\u2019s performance the most. It could be dips in account numbers, stalled revenue growth, or lower engagement rates.<\/p>\n Here are some common situations that might indicate a churn problem:<\/p>\n In a nutshell, account churn refers to the number of individual accounts or users who cancel their subscriptions over a given period. Whereas revenue churn focuses on the loss of revenue rather than the number of accounts.<\/p>\n Understanding this difference is key. Even if account churn remains low, revenue churn<\/a> can still get high if you lose high-value customers or get too many downgrades.<\/strong><\/p>\n For instance, if account churn is high, you may need to enhance onboarding<\/a> and education for all users, including on your mobile app<\/a>. On the other hand, solving revenue churn may require additional attention to pricing, upselling strategies<\/a>, or targeted customer success efforts.<\/p>\n <\/p>\n\n
When to investigate churn reasons<\/strong><\/h2>\n
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Account churn vs revenue churn<\/strong><\/h3>\n