How to Utilize Churn Software to Predict and Prevent Customer Loss
Churn software is like having a secret weapon that predicts when a customer might leave and helps you prevent it from happening. It's a game-changer you don't want to miss out on.
We also understand how important customer retention is to SaaS and tech businesses. Sources have found that just a 5% increase in retention rates can boost profits by up to 75% and yet so many companies haven’t prioritized churn management via churn software.
Below, we’re digging into the different “faces” and elements of high-quality churn software. We’ll also give you industry-leading recommendations to consider as you work to build out your tech stack. Read on to learn more.
Before truly defining churn management software, we have to look at what churn really is. Simply put, it’s the percentage of clients a business loses at any given point in the funnel. You can examine churn by demographic, segment or pipeline position — using these nuances to help you create a customer retention strategy.
Churn management, then, is the art and science of winning customer loyalty over time. This usually comes down to an amazing customer success team, product and experience as a whole.
Defining what churn looks like by brand experience is a great place to start if you want to start boosting your profitability and customer loyalty rates. There are plenty of reasons customers might churn out, including:
Wrong product-client fit
Lack of support
Lack of results
Lack of faith in the brand, offer or their own ability to execute
If left unmanaged, churn can wreak havoc on a business, limiting profitability and damaging brand perception in the industry. Checking this dynamic percentage is key to your overall brand stability. It’s so important that Hevo estimates that reducing churn by 5% could lead to a profitable gain of 25%-125% above average.
With this in mind, it’s clear why brands and SaaS companies need churn software they can count on — minimizing risk and lowering churn rates in a sleek, automated and customer-forward way.
Many execs might wonder: What features and capabilities are necessary for churn management software to maximize our investment?
If that’s you, we’ve got you covered. Skip the mile-long how-to guides and take a look at our list of the top features to watch for in your churn tool of choice, all of which have been vetted by our experts across industries.
Customer behavior is like a road map, helping you to proactively address and reduce churn, boost profitability and build relationships and loyalty at every point in the customer journey.
Your tool of choice should be able to collect and use data to:
Predict customer behavior
Analyze segments across existing customers and new ones
Aggregate the information in a simple layout for further use, perhaps via a visual “customer health score”
By analyzing their behavior, you can gain valuable insights into what they need, want and expect from your business. This way, you can build a loyal customer base that will support your business for years to come.
Predicting churn: Is it truly possible?
Yes — but with a caveat. While you won’t be able to have 100% accuracy at all points in your analysis, you’ll be able to feed off of fed data from mobile apps, storefronts and other areas of sale, using behavioral tracking and further machine-led analysis to limit your risk profile.
Targeted marketing is the future of SaaS success. Using a tool that offers segmentation helps prevent customer churn. It allows a brand to speak to customers directly, building intimacy and a relationship extending throughout a customer’s lifecycle.
Churn risk can be lowered with strategic user engagement. Consider it “bonus points” if your customer success teams can connect to social media profiles and with customers right from the native platform you pick.
Some tools might come with chatbots or automation that simplify communication. This can be especially useful for rapidly expanding small and mid-size businesses (SMBs) that serve larger or international audiences.
Integrations are always something you’ll want to check for. A centralized system cuts down on inefficiency and is much simpler to manage. It also enables a smoother customer experience, actively reducing churn risk.
You may find that you only want to see one singular element of your data at any time. Custom dashboards and reporting options simplify this, allowing for more data-driven action in every area of your team and organizational structure. They also save you incredible amounts of time that would be spent manually formatting.
While this may seem obvious, pricing should be a key area of focus in your process. It's crucial to pick a sustainable approach that could be maintained even if you experience a higher churn rate in the future. Abruptly starting and stopping a program can negatively affect your brand image. If you’re not sure where you’ll fall in the next quarter or two, it’s usually better to play it safe or look for an a-la-carte setup that you can tailor or upgrade as you go.
Now that we’ve covered what to look for in a SaaS tool to reduce customer churn, we’ll pull back the curtain on our favorite customer success platform options that include most, if not all, of these features — putting customer satisfaction on autopilot.
Here’s who’s in the running.
We couldn’t make the list of the best churn management tools without throwing our own hat in the ring, of course! Our platform is designed to pay for itself with the cost saved from increased customer satisfaction and related sales.
We offer a low- and no-code solution meant for launch in mere days. Our suite is also among the most comprehensive on the market.
Stakeholders will enjoy premiere churn management tools for every leg of the customer journey, including:
Exit survey automation and raw components
Incentivization and gamification tools
A/B testing capabilities
Many integration opportunities for the tools you love
…and much, much more
Stripe has a partnership with Churn Buster focusing almost exclusively on payment recovery support. While this is considered a perk in many customer retention software programs, the scope may be narrower than many businesses need. We’d recommend using this if you feel comfortable in your own processes for customer behavior observation and management of customer data and simply need a channel to recuperate lost payments.
Chargebee offers a code-free customer success platform that targets voluntary and involuntary churn factors. It works to communicate with customers and collect customer feedback around voluntary factors, offering alternative solutions to cancellations. It also works to streamline the payment process to keep your business as profitable as possible.
This handy platform analyzes customer data and proactively addresses involuntary churn measures (such as churn caused by payment failures, etc.). It offers flexible and customizable data sets and dashboards for quick scaling and multiple incentivization options your customers will love.
Salesforce is a customer relationship management (CRM) software that can help you manage your customer interactions and reduce customer churn. You'll gain valuable insights into your customers' behavior, so you can tailor your marketing and sales efforts to better meet their needs. Plus, you'll have access to a range of tools and features that can help you improve customer engagement and drive more effective sales and marketing campaigns.
The platform offers an integration opportunity with ChurnZero — a platform specializing in customer data maintenance and analysis. This tool is a great option for those looking for data-driven solutions they can use with team members or secondary tools. It’s also a great choice if your company is already enmeshed in the HubSpot ecosystem and wishes to keep everything as centralized as possible.
Recharge offers an integration with Churn Buster, primarily focusing on customer communication and support that can occur when a payment is missed or a cancellation is noted. The service also harvests valuable customer data from each point in the journey, allowing you to take a tailored approach to retain your client core.
The number one enemy of profitable, sustainable business? Churn. The fix? Churn software and a proactive customer retention approach.
Churn software is vital to any customer retention strategy, putting time back into your day and dollars back into your budget. Choosing the right churn software ultimately depends on the needs of your business. However, there are a few common factors to watch for (such as integration opportunities, custom dashboards and inbuilt customer communication support).
ProsperStack is the tool of choice for SaaS and tech brands. Connect with us today to request a demo.