So let’s find out how to achieve this and boost customer retention<\/a>.<\/p>\n Customer attrition<\/a> is the loss of customers from your business. In SaaS, it’s more popularly known as customer churn and occurs when your product or service fails to offer continuous value to customers.<\/p>\n Mathematically speaking, customer attrition is the percentage of customers lost over a specific period. To calculate the customer churn rate, divide the number of customers who left in a given period by the number of customers present at the beginning of that period.<\/p>\n Customer churn analysis<\/a> is the process used to leverage data to answer the four primary questions about churn:<\/p>\n For SaaS businesses, the churn rate shouldn’t exceed 5%-7%<\/a>. However, flaws in your product or negligence toward changing customer needs can greatly disappoint customers and push churn up to even 20%.<\/p>\n Analyzing the data from churn analysis should give you actionable insights into the drivers of churn<\/a> and how to minimize this. You can identify and remove friction points, enhance the customer experience, and optimize your product to address rising churn rates.<\/p>\n So far, the article has used the words ‘churn’ and ‘attrition’ interchangeably because there’s no difference between customer churn analysis<\/a> and customer attrition analysis. They are the same process with different names.<\/p>\n You should monitor and analyze churn<\/a> data every month. This will make sure you don’t lose sight of any rise or fall in churn rates.<\/p>\n Therefore, you can avoid losing more customers by stepping in with solutions at the right time. You can also check the impact of any improvements to your product or customer service on the churn rates.<\/p>\n You can see from the graph below that about two-thirds of the businesses from the Databox survey said they perform customer attrition analysis monthly.<\/p>\n SaaS companies need to track a number of key metrics to ensure high product performance and customer satisfaction. Let’s briefly go over the six customer churn metrics that you should track regularly.<\/p>\n Because customer churn is induced by a multitude of factors, your attrition analytics process should be robust enough to reveal all unhappy customers and their sources of dissatisfaction.<\/p>\n Here’s what you can do to get the process right.<\/p>\n Predictive churn analytics<\/a> is critical to identifying customers at risk of churn. And one of the most effective ways of gathering relevant and accurate data is by using feature tagging<\/a>.<\/p>\n Feature tagging helps you understand the effect of your in-app onboarding flows<\/a> on your product growth goals.<\/p>\n You can track in-app customer engagement with different features and find trends in user behavior<\/a>. It not only helps you know how customers use and interact with each of these features but also uncovers features that users are struggling with the most.<\/p>\n Along with feature usage, you should track specific elements like clicks, text inputs, and hovers regularly. Tracking user engagement at different touchpoints across the customer journey<\/a> will give you a comprehensive view of user behavioral patterns. Therefore, the insights make it easier for you to form the next strategy.<\/p>\n Microsurveys<\/a> are easy and fast for collecting customer feedback<\/a> at various stages of the user journey. You can trigger these surveys to appear inside your app after a customer completes a specific action. This increases the number of responses you can get.<\/p>\n There are multiple microsurveys used for various purposes, such as NPS, CSAT, customer effort score<\/a>, and feature surveys. If the survey asks users to rate their experience on a number scale like CSAT surveys<\/a> do, include a qualitative follow-up question<\/a> to learn the exact reason behind each score.<\/p>\n Based on the data you want to collect, you may have to send microsurveys to only a particular group of people. Therefore, we would recommend you segment customers based on common characteristics.<\/p>\n Let’s discuss this in more detail.<\/p>\n Customer segmentation<\/a> is the process of dividing customers into groups depending on multiple shared criteria like engagement level, satisfaction score, and NPS score.<\/p>\n Let’s say you want to know whether trial users find value in your product. You can trigger a microsurvey, such as the one shown above after they’ve completed a key activity. This will help you address any issues before a trial user leaves without subscribing to your product.<\/p>\n With segmentation, you can create several user segments according to a number of criteria.<\/p>\n The example below shows how you can create a segment of detractors based on their NPS scores. The NPS response tagging feature lets you analyze qualitative responses and create tags such as ‘missing features’. You can add these tags as another criterion for segmentation.<\/p>\n Exit surveys, or churn surveys<\/a>, are sent after a customer downgrades or cancels their subscription to your product to understand why they chose to leave\/downgrade.<\/p>\n There are 3 types of questions on churn surveys:<\/p>\n Among these three, mixed questions may be the best option. You can add an optional qualitative question<\/a> for customers who want to elaborate on their answer or who couldn’t find any relevant option in the multiple choice.<\/p>\n The in-app churn surveys are sent right after a user hits the cancelation button. This ensures that they see the survey before finalizing their decision.<\/p>\n Moreover, you can suggest alternative choices to churning customers, such as temporarily pausing their accounts instead of leaving permanently. That said, knowing the causes of churn allows you to make improvements in your product and user experience for them and your existing customers.<\/p>\n Finally, bring all the data together and use tools like dashboards for analysis<\/a>. A dashboard gives an overview of your key customer metrics and visualizes trends in metrics like churn rates using simple charts.<\/p>\n The customer attrition rate should be among the important metrics measured and compared with results from feedback analysis<\/a>. This will help you better understand the churn drivers in your company. You can also identify the drop-off points to tailor your churn reduction strategies to these particular areas.<\/p>\n Now that you know how to conduct customer attrition analysis, it’s time to incorporate the insights into retention strategies. Here’s what you should do.<\/p>\n You should use historical data to find high-risk customers. Combined with insights from customer feedback analysis<\/a>, you can proactively reach out<\/a> to these customers with customized solutions.<\/p>\n It\u2019s better to make them feel as involved as possible in your improvement strategy. Allowing customers to share more thoughts on how their experience can be improved will increase the chances of customer success. Moreover, customers will appreciate your emphasis on their input and might choose to stick around.<\/p>\n A trend analysis of the historical churn data will let you predict future churn rates. You can re-evaluate these rates later on to check the impact of your churn reduction strategies.<\/p>\n After implementing strategies to mitigate the apps you have found in your analysis, you can run A\/B experiments <\/a>and optimize your product.<\/p>\n You can A\/B test to see if an interactive walkthrough<\/a> helps users reach a product milestone without churning. For example, can a tooltip help users discover and engage with a new feature? Run an experiment to see.<\/p>\n Analyzing the experiment results will help you understand how customers engage with your product<\/a>. As a product manager, you can run A\/B experiments and iterate your onboarding processes to drive adoption goals<\/a> and prevent churn.<\/p>\n Build in-app self-service support<\/a> so that customers can access it whenever they run into problems, particularly the repetitive kind. This ensures top-notch, 24\/7 support that would also reduce pressure on the customer support team.<\/p>\n One poor customer service is often enough to make a long-term customer skeptical about using your product. To prevent this, the in-app resource center comes with bug fixes, documentation, FAQs, troubleshooting tips, a live chat option, a link to the knowledge base, etc.<\/p>\n In-app guidance<\/a> reduces frustration and improves the customer experience. Users also feel accomplished when they fix an issue using your knowledge base.<\/p>\n Churn reduction is not feasible without proper analysis. Here, churn analysis enables you to uncover meaningful insights into user behavior and engagement. You can use the results to develop strategies to improve the customer experience.<\/p>\n Want to get started with customer attrition analysis? Get a Userpilot demo<\/a> and reduce customer churn<\/a>.<\/figure>\n","protected":false},"excerpt":{"rendered":" Churn reduction is not feasible without proper analysis. Here, churn analysis enables you to uncover meaningful insights into user behavior and engagement. So let’s find out how to achieve this and boost customer retention.<\/p>\n","protected":false},"author":24,"featured_media":39271,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[770],"tags":[1749,1669,1748,285,199,263,1750,316,236,245,880],"class_list":["post-39270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ux-analytics","tag-attrition-analysis","tag-churn-analysis","tag-customer-attrition","tag-customer-retention","tag-nps","tag-reduce-churn","tag-segement-customers","tag-user-engagement","tag-user-feedback","tag-user-retention","tag-user-satisfaction"],"acf":[],"yoast_head":"\nSummary of a customer attrition analysis<\/h2>\n
\n
What is customer attrition?<\/h2>\n
What is customer attrition analysis?<\/h2>\n
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Customer churn analysis vs customer attrition analysis<\/h2>\n
How often should you analyze churn?<\/h2>\n
![\"track-churn-frequency-report.png\"](\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/10\/track-churn-frequency-report_4cc802e503c137c9ee7163503f64a9a0_800.png)
<\/picture>What metrics should you track for customer attrition analysis?<\/h2>\n
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Customer attrition analytics process: How to do it right?<\/h2>\n
Track in-app user engagement and identify behavioral patterns<\/h3>\n
![\"customer-attrition-analysis-tag-feature.gif\"](\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/10\/tag-feature_a3fdbc94f0abb9c38532fb1fe519e1fa.gif)
<\/picture>Use microsurveys to track customer satisfaction and collect qualitative data<\/h3>\n
![\"feature_surveys_slack-in-app-messages.png\"](\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/10\/feature-surveys-slack-in-app-messages_d36c51cd467ce39eb0c6159c1ddd74d9_800.png)
<\/picture>Segment customers based on engagement and satisfaction<\/h3>\n
![\"customer-attrition-analysis-segmentation-userpilot.png\"](\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/10\/segmentation-userpilot_37717274ab8885d7ba2e64392257b4fa_800.png)
<\/picture>Send exit surveys to understand why customers churn<\/h3>\n
\n
![\"userpilot-churn-survey-predict-churn.png\"](\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/10\/userpilot-churn-survey-predict-churn_14a8ce43ffdc1f0de9c29f3fa13683da_800.png)
<\/picture>Collect data insights in one place and analyze customer attrition<\/h3>\n
How to use attrition analysis to improve customer retention?<\/h2>\n
Predict future churn and proactively reach out to at-risk customers<\/h3>\n
![\"reach-out-detractors-NPS-at-risk-customers.png\"](\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/10\/reaching-out-to-detractors_73c551da9bd536753da73134c4f8232e_800.png)
<\/picture>Run A\/B experiments and optimize your product<\/h3>\n
![\"customer-attrition-analysis-ab-test-userpilot.png\"](\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/10\/ab-test-userpilot-1_7147d794d71b0fd1020a509e4fae7290_800.png)
<\/picture>Improve in-app guidance to provide better support to existing customers<\/h3>\n
![\"video-tutorial-playing-in-app-resource-center-userpilot.gif\"](\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/10\/video-tutorial-playing-in-app-resource-center-userpilot_9d397fcf20c07e6c129604d0289b4687.gif)
<\/picture>Wrapping it up<\/h2>\n