Signs Your Company Has A Churn Problem - Deepstash

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Signs Your Company Has A Churn Problem

Here are a few signs/red flags that you might have a churn problem:

  • Your churn is outpacing new customers.
  • LTV is shrinking: The longer your customers stay with you, the higher the lifetime value (LTV) of your average customer should be.
  • Your churn rate is above 10%: 5-7% is considered an average churn rate. But when you start getting into double digits, it’s usually a sign that something in your process isn’t working. 
  • More downgrades than upgrades: If you offer different plans or add-ons for your product, you want to have more customers upgrading than downgrading.

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Listening to your customers (and acting on their feedback) directly impacts churn.

  • User churn is the number of customers you’re losing in a given timeframe (typically per month or year).
  • Revenue churn, which is arguably even more important, is the amount of revenue you’re losing in a given time frame due to downgrades or cancellations.

Churn can most basically be defined as resources lost in a given period of time. Typically it’s referring to users or revenue lost and is usually represented with either a percentage or dollar amount.

To get more clarity, look at your churn by customer segments or cohorts.

Ask your customers why they are cancelling. Make sure you customize the cancellation reasons in your survey based on your product.

You can build Customer(or Brand) Loyalty by:

Typically, one of two things happens when your customer’s payment fails:

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