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How Groove Reduced Churn by 71% By Defining “Why” Customers Quit. churnrate meant the company’s growth was unsustainable. When they met to discuss and attempt to address the issue in January 2013, they realized they had little insight into exactly why customers were leaving. The Execution. image source.
In the activation phase, measure these performance metrics: Conversion rate Number of customers using a product feature Drop-off rate Dwell time. Address churn by engaging users. Use this information to optimize for retention with: Transactional messaging. Convincing users to stick around is crucial for growth.
It means that user retention becomes even more important. If users are not onboarded properly, the chances of retention are minimal. Retention is the trailing indicator and true measure of quality onboarding, so that’s what I’d hold experiments up against.” (via Onboarding is about retention, not acquisition.
Calculate Your Churn. ” The easiest metric for subscription software products to check is churnrate. . “On SaaS, target churnrate should be around 2% monthly churn. The way KISSmetrics does this is by calculating the churn-rate for each level of subscription plan. image source.
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