Don’t tell me you miss me: 3 better approaches to user retention - Deepstash
Ultimate Guide to Reducing Churn

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How to analyze churn data and make data-driven decisions

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Ultimate Guide to Reducing Churn

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We Miss You!

A company you bought something from months ago sends you an email with three immortal words: “we miss you”.

These messages feel icky because the sentiment is belated and insincere. Deep down we know that the business doesn’t really miss us. The business doesn’t know our sparkling personality or understand our unique contribution to the community – the business just misses our money.


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A Better Retention Campaign

A retention campaign that paints a commercial relationship as a personal one will always be awkward at best and at worst will create ill will. Here are three better ways to create retention campaigns that feel genuine and actually work:

  • Focus on how your product helps
  • Identify and solve the problems that caused churn
  • Proactively monitor usage and value


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Focus on how your product helps

The mistake at the heart of the “we miss you” message is that it represents the customer’s relationship to the business as personal, not commercial. Personal relationships are based on who we are, and we want them to persist through thick and thin. But commercial relationships are different.

To re-engage customers effectively, you need to remind the customer of what it is that got them there in the first place. Instead of guilting them into returning simply because they bought from you once, remind them of the benefits that your business can provide. 


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Identify and solve the problems that caused churn

Many experiences can cause churn: inability to find the right product, struggles to get set up, a poor service experience, or changing business needs. A retention campaign that specifically addresses the issue that caused churn and provides a simple next step stands a high chance of success, as it speaks to the root cause of the churn.

  • The first step is analyzing customer actions to identify common causes of churn. 
  • Secondly, design a campaign to specifically address the cause of churn.


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Proactively monitor and manage value

Customers generally stop using (or cease to repurchase) products when they don’t get enough value out of your product to justify the price, not out of forgetfulness or disloyalty. To identify customers who might not be getting enough value (and so are candidates to churn), look for the ones who aren’t using the functionality that they’re paying for.

The trick to doing this well is measuring behaviour that corresponds to a customer getting value. For consumer products, the value will be tied to usage. But ensure you set a threshold that avoids counting logins or app opens alone.


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The Bottomline

Understanding why each customer is buying your product and then measuring whether they’re taking the actions that would enable them to achieve that result enable you to deliver specific and personalized interventions. If your company has an account management team, this scorecard can form the basis for high-impact business reviews with customers.


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