Tested Tactics to Reduce Voluntary Churn and Retain Customer Loyalty

What is Voluntary Churn?

  • Happy churn takes place when the customer has finished using your product for their campaign or task and cancels their subscription, despite their positive experience. A good way to identify the happy churners is by looking at the percentage of canceled accounts that have been reactivated at a later date.
  • Fake churn — or churn that isn’t really churn. It applies to subscribers who take advantage of a 30 or 60-day money-back guarantee policy. Separating out the users who fit into this category is usually easy because there is a different dynamic going on that isn’t representative of a typical long-term user who decides to cancel.

Can You Predict Voluntary Churn?

How to Prevent Voluntary Churn

Encourage Your Customers to Auto Renew

Send Renewal Reminders Correctly

Provide the Option of Pausing Subscriptions

Using Cancel Flows to Keep Customers

  • Offering free “trial” upgrades for a predetermined period of time
  • Discounting upgrades to reward loyal customers
  • Offering discounts for converting to a recurring billing plan for more convenience

Track Pre-Cancel Events

  • Customers who go silent and stop logging in regularly
  • Customers who constantly seek help and start to complain that their questions aren’t being answered
  • Customers who provide feedback on features they want you to add, but don’t feel like their requests are being addressed
  • Customers who just decide not to update their payment details

Test and Optimize your Shopper Support and Renewal Processes

  • Modifying shopper support flows grew customer retention by 50%
  • A/B testing on renewal notification elements such as templates, timelines, and prices decreased chargeback requests and refund rates

Collect Feedback — and Act on It

  • What is the main reason you decided to discontinue using our services?
  • How can we provide better communication and customer support?
  • Could you please share any other comments or concerns so we can build a better relationship in the future?

Adapt Your Churn Prevention Tactics to the User

In Conclusion

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.

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2Checkout (now Verifone)

2Checkout (now Verifone)

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.

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