How to find slipping away users?
Churn, the bane of subscription-based businesses, is a significant concern for any company looking to thrive. It's the metric that measures the rate at which customers stop using your product or service during a given period. Churn can be a formidable challenge, affecting your bottom line and profitability.
This is where Usermaven steps in, providing a solution for churn analysis that goes beyond numbers. Usermaven equips you with the tools and insights to delve into the world of slipping away users. It enables you to decipher the reasons behind customer attrition, comprehend customer retention rates, and take data-driven actions to prevent users from waving goodbye to your service.
Let's explore the world of churn analysis and see how Usermaven can be your ally in retaining your valuable customers.
A "Slipping Away User," often referred to as a churned customer, is someone who is on the verge of discontinuing their engagement with your product or service. These individuals are typically subscribers who display signals indicating their likelihood to cancel their subscription. In essence, they are at risk of churning, which means leaving your service. Recognizing these at-risk customers is a critical step in actively reducing churn and extending the retention of your customer base.
For SaaS companies, identifying churn risk primarily relies on monitoring in-app activities. The significance of churn analysis cannot be overstated for your SaaS business. Here are some essential considerations:
- Cost-Efficiency: Acquiring a new customer can cost anywhere from 6 to 7 times more than retaining and selling to an existing one.
- Customer Advocacy: Approximately 72% of customers who have outstanding product experiences are likely to spread positive word-of-mouth to their friends and family.
- Sales Probability: Selling to an existing customer boasts a probability of around 60-70%, whereas selling to new prospects significantly reduces, with chances ranging from 5-20%.
Churn analysis by Usermaven can play a pivotal role in benefiting your business in several ways:
- Reducing Revenue Loss: By identifying and addressing churn risk, you can minimize revenue losses caused by customers leaving your service.
- Cutting Customer Acquisition Costs: Since retaining existing customers is more cost-efficient than acquiring new ones, churn analysis helps in reducing customer acquisition expenses.
- Enhancing User Experience: Understanding the reasons behind churn allows for improvements in user experience and service, potentially leading to higher customer satisfaction.
- Increasing Upselling and Cross-Selling Opportunities: A comprehensive churn analysis provides insights that can be used to increase your chances of upselling and cross-selling additional products or services to existing customers.
To tackle churn effectively, it's essential to distinguish between two primary types: customer churn and revenue churn.
- Customer Churn: This refers to the rate at which customers leave your service. In the context of SaaS companies, it often involves customers not renewing their subscriptions, known as contractual churn, or departing before making a purchase, termed non-contractual churn. Customers may also leave voluntarily due to dissatisfaction or involuntarily because of financial constraints.
- Revenue Churn: Revenue churn is directly tied to Monthly Recurring Revenue (MRR). It reflects the percentage of MRR lost due to either customer churn, where existing customers cancel their subscriptions, or customers downgrading their current subscription plans.
By understanding and measuring these two churn types, you can develop strategies to enhance customer retention, sustain revenue growth, and maintain the overall health of your business.
Usermaven offers a solution to pinpoint slipping away users. To create a dashboard for tracking slipping away users in Usermaven, follow these simple steps:
- Go to your Usermaven dashboard and navigate the "Product Insights" section.
- Within the "Product Insights" section, locate and click on the "Retention" option.
- At the top of the "Retention" page, you'll find the "Manage Insights" button. Click on it to set up your slipping away dashboard.
- Provide a name for your insight; in this case, name it "Slipping Away Users."
- Next, select the events that indicate product usage. These events are critical for measuring slipping away user within your product.
- Once you've configured your insight preferences, click "Save Insights".
And there you have it! You've successfully created a dashboard that tracks slipping away users for your product.
Usermaven provides an insightful graphical representation of your product's churn rate, illustrating users who haven't been active for various periods: 7, 14, 30, 60, and 90 days. You can choose to view this data either in absolute numbers or percentages by clicking on the "View in Absolute Numbers" or "View in Absolute Percentages" tabs located on the right side of the graph.
If you wish to access detailed user information for a particular timeframe, click on the corresponding bar in the graph. This will open a window displaying user details, such as email addresses and names, allowing you to initiate direct communication and gather user feedback.
At the top of the Usermaven dashboard, you'll encounter two fundamental tabs: "Users" and "Companies." These tabs offer you the flexibility to examine slipping away user metrics from both a user and company perspective. Usermaven allows you to access the following insights based on your choice of the "User" or "Companies" tab:
User-Level Slipping Away Metrics: At the user level, you can delve into the specifics of individual user behaviors on the “slipping away users” dashboard This offers insights into how each user interacts with your product and helps identify those at risk of churning. Analyzing individual user data is invaluable for personalized retention strategies and engagement efforts.
Company-Level Slipping Away Metrics: For businesses catering to organizations, Usermaven provides company-level metrics that reveal how entire entities interact with your product. This insight is particularly valuable for understanding adoption trends and engagement within organizations, guiding strategic decisions for business growth.
In Usermaven, precision in data analysis is at your fingertips with the ability to filter churn rate based on various segments. Here's how you can refine your insights:
- Begin by locating the "Filter by Segment" tab, situated conveniently at the top right corner of your screen within Usermaven.
- Upon clicking this tab, you'll find a range of Segment options that you have created already.
- By selecting any of these segmentation options, you'll have the slipping away metrics for that specific segment.