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Voluntary Churn

What is voluntary churn?


vol - un - tar - y churn
noun


Voluntary churn occurs when a customer makes the concious decision to discontinue their engagement with a product or service, which could involve downgrading to a lower-tier plan, switching to a different service or completely ending the contractual relationship. Successfully reducing voluntary churn hinges on a strategic blend of factors, such as ensuring active product usage, enhancing the overall customer experience and delivering consistent perceived value. When customers find your product valuable, enjoy a positive experience and use it regularly, they're more likely to remain loyal, whether it's transitioning from a free trial to a paid plan or deciding to renew their subscription.

Focusing on the right customer base initially, analyzing how users interact with your product, continually refining it, and communicating effectively are effective strategies to minimize customer loss.

Some customers might still consider leaving. To further reduce this churn, you can utilize additional tools. Offering discounts during the churn process can persuade price-sensitive customers to stay.

Especially for subscription services, presenting the option to temporarily pause instead of cancel can be valuable in preventing voluntary churn. Extending subscription durations and encouraging automatic renewals also help retain subscribers. Allowing them to switch to more affordable plans with slightly fewer features is another approach to decrease voluntary churn.

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