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What surprised you about churn when putting together The Comprehensive Guide to Churn?

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Patticus's avatar
a year ago

Churn is a fact of life for a subscription company - like death and taxes. :)

Yet, the biggest surprise as I started studying churn and publishing findings on churn is the mechanical nature of a large portion of your churn. Right now for most subscription businesses roughly 40% of your churn could be solved through mechanical means. Put another way - 60% of your churn requires improvement in product, customer targeting, etc, but the other 40% could be cleaned up by getting your credit card failures in order, optimizing for the proper term for your customers, re-engagement campaigns, etc.

In product, we love to romanticize churn as the eternal pursuit of perfection that will keep the value driving for the customer and therefor keep them around. While there's some truth there, this view clouds growth managers from properly working on churn in most organizations. In reality, those mechanical bits matter. They'll never be the end all be all to your churn (and that 40% obviously fluctuates), but there's a lot more to do that is shorter term/medium impact when it comes to churn and retention.

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maguay's avatar
@maguay (replying to @Patticus )
a year ago

Curious from a content marketing perspective: Do you see a higher conversion rate from content behind a signup wall such as this Churn Guide, or from your public, search-accessible blog content?

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Patticus's avatar
@Patticus (replying to @maguay )
a year ago

Hard to say. Quality of conversion is better for the ebook, volume may be better for our SEO optimized posts. I'm not against forms. I just feel you need to use them in the right places if that makes sense.

1 point
sarah's avatar
@sarah (replying to @Patticus )
a year ago

Any products you'd recommend to help with identifying the 60% churn?

1 point
Patticus's avatar
@Patticus (replying to @sarah )
a year ago

A great product team. Really the only folks who are going to be able to work through those problems.

1 point

This question is part of an AMA with Patrick Campbell.

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