What is Churn?

By Scott Max

The churn rate is the percentage of customers or subscribers who stop using the services offered by a company during a given period of time, usually measured on a month by month basis.

This video will help explain churn more in detail:

Although it is a term associated with email marketing, it is also used in other sectors to refer to the loss of customers. For example, if we have 500,000 subscribers to our weekly newsletter and we have received cancellation requests from 5,000 of them, we divide 5,000/500,000 obtaining a 10% churn rate.

How to reduce churn?

Although having 0% is almost impossible, we can apply these practices to reduce our church rate or cancellation rate as much as possible:

  • Find out why you are unsubscribing from your newsletter: Ask your consumers, through tools such as surveys, they will be the ones to give you the keys to what you are doing wrong.
  • Know your weaknesses: When a user signs up, it is because you offer something different that interests them. When they drop out, perhaps it is because they no longer offer the same quality or because your competition has a better service.
  • Get updated: Something that works doesn't have to work forever. Change the design and contents you offer to your subscribers. This way you will keep the customers you already have satisfied.
  • Plan a good email marketing strategy: The frequency of shipments, recipients, database management

In short, the balance between attracting subscribers who are sympathetic to our product or service and maintaining those we already have is the key to keeping our churn from skyrocketing.

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