Top Software for Churn Prevention
Churn prevention software helps companies track, predict and prevent customer churn.
Below we explore the types of churn, what factors lead to customer attrition and how churn prevention software can help, including the key features to look for and the top 10 churn prevention offerings available today.
What is churn prevention software and how can it help?
To fully understand what churn prevention software is and why it’s necessary, one must first comprehend customer churn and why it’s so detrimental to a company’s revenue growth.
Types of churn
There are several categories of churn, including voluntary and involuntary, customer churn and revenue churn, and others.
Customer churn refers to the rate at which existing customers stop doing business with a company within a specific period. It measures the percentage of clients who discontinue or leave the service, highlighting customer retention challenges and the impact on business growth and revenue.
Revenue churn, in contrast, refers to the financial loss from canceled subscriptions, downgrades or lost customers within a particular timeframe. It reflects the decrease in recurring income due to customer attrition or reduced spending, which naturally affects a company’s overall revenue stream.
Contributors to churn
There are various reasons why SaaS companies and other subscription-based businesses might experience churn. A primary purpose of churn prevention software is to identify these issues.
Some common factors include:
Customer dissatisfaction - Naturally, when customers aren’t happy, they go elsewhere. This erosion in customer loyalty ultimately increases churn risk, resulting in lost business over time.
Lack of engagement - When customers stop using a company’s product or service as much as they used, they become officially disengaged. Unless concrete attempts are made to re-engage and retain customers like these, they will likely leave for alternatives.
Competitive factors - A lower-cost or innovative competitor can entice customers to switch.
Importance of churn prevention
If you have any doubt that customer retention is important, read on.
Customer retention increases revenue and accelerates business growth
Using software to pinpoint reasons for churn and making changes accordingly helps businesses retain revenue from existing clients, increasing customer lifetime value and lessening acquisition costs.
Loyal customers tend to spend more, refer others and stabilize income streams so companies can focus on expansion, catalyzing their overall growth. It’s also possible to upsell and cross-sell complimentary products to satisfied customers.
Churn reduction leads to long-term customer relationships and enhanced customer experience
Many churn management programs collect customer feedback, monitor “customer health” scores, and . All this information can enhance the user experience and strengthen customer relationships.
Identifying at-risk customers helps re-engage them
AI-powered churn prediction software analyzes large datasets to determine which customers are at-risk of leaving and why, allowing businesses to take action to retain them, substantially increasing their revenue and growth.
Churn prevention features
Look for these key features when evaluating churn prevention software.
Analytics and tracking
It’s crucial that the software closely tracks customer behavior and other data points so businesses can see which users are at risk of canceling or leaving. In other words, customized dashboards filled with rich analytics, allow companies to determine which customers might churn so they can make every effort to retain them.
Segmentation and personalization
Customer segmentation allows businesses to customize different aspects of the customer journey to boost customer satisfaction. After all, customers whose needs are being met will want to stick around for the long term.
ProsperStack, for instance, allows customers to define key subscriber segments using billing, CRM and other data, implement sophisticated offer rules to target customers with personalized offers, and then uncover valuable insights to drive continual optimization.
User engagement
High-quality software provides user engagement tools so companies can more easily engage/re-engage new, old and even inactive customers.
Integrations
Churn prevention software should integrate with the tools a business already uses. For example, ProsperStack’s retention and churn platform works with Stripe, Chargebee, Paddle, Braintree, Maxio, Recurly, Zuora, Naviga, Shopify, Recharge and Bold, as well as the following CRM/CDPs: HubSpot, Salesforce, Intercom, Klaviyo and Segment.
Scalability
As a business grows, it needs its churn prevention software to grow with it. The program should remain stable and reliable despite any changes in workload volume.
Churn prediction
Finally, software options can help businesses predict customer behavior via analytics and other data points. It’s like having a crystal ball that foretells the future when it comes to churn — and what company doesn’t want that?
Real-time alerts and notifications
One of the best ways for a company’s customer success team to prevent churn is to receive real-time alerts about at-risk customers. This allows them to save users by quickly fixing their problems and attempting to delight and satisfy them before they decide to move on.
The 10 best churn prevention software
Check out the best churn management software options available today. Businesses that invest in these services can expect to see significant churn reduction and accelerated growth.
ProsperStack
ProsperStack pays for itself by saving 10-39% of customers at the point of cancellation. With low- and no-code integration options, it can be saving customers in days, not months.
Features include:
Exit surveys and churn analytics
Deflections and incentives to reduce churn
A/B testing to optimize offer performance
Customer segmentation for targeted offers and reporting
Billing platform, CRM/CPD and other integrations
And so much more
Akkio
Next on this list of churn management software is Akkio, which bills itself as scalable, easy-to-use and affordable. It utilizes AI to help companies make decisions in real-time.
Churnly
Churnly is a churn prediction service that uses machine learning to analyze customer data and identify at-risk customers so its clients can implement tailored retention strategies.
Qualtrics XM
Founded in 2002, Qualtrics XM refers to itself as an “experience management platform,” focusing on predicting what users will do next. Beyond predicting churn, clients also use it to perform product concept analysis and more.
Userpilot
Nevada-based Userpilot helps teams personalize in-app experiences within the customer journey. It aims to increase retention and user engagement (thereby reducing churn) by improving onboarding processes and more via customized and dynamic “flows.”
GainSight
In this list of churn management tools, GainSight is more commonly referred to as a customer service management platform since its services are broader than just preventing churn. The business helps companies manage and optimize their customer relationships to boost retention and revenue via analytics and automation.
Segment
Twilio subsidiary Segment uses AI to compile, clean and utilize first-party customer data to create customized user experiences. Furthermore, the collected data informs decisions, monitors performance and helps companies better understand their users.
Vitally
Vitally enables its B2B SaaS clients to connect data between various tools in their tech stacks so they can measure net revenue retention (NRR), decrease churn and boost productivity. It offers clients alerts, analytics and automation.
ChurnZero
Committed to “helping subscription businesses fight customer churn,” ChurnZero offers automation, health scoring, in-app communication, reporting and revenue forecasting so customer success teams can deliver more value and drive more revenue.
Retently
Retently gathers customer feedback via surveys that clients use to measure customer satisfaction, create workflows and support decision-making. The company is well-known for its excellent customer support.
The essential role of churn prevention software in business success
Companies simply can’t afford to ignore churn. No matter how proficient they are at acquiring new customers, sustainable growth is only possible if users stick around. Moreover, high churn usually signifies something wrong — maybe customer service isn’t up to par or the value proposition is inadequate.
Whatever the case, implementing churn prevention software is the best way to diagnose problems and fix them — ultimately decreasing churn and boosting profit.
If your company is serious about improving retention, ProsperStack is one of the fastest and most cost-effective ways to reduce churn. Get a free demo today.
