Workpuls' Maja Rajić Milivojević on automating churn reduction

Neel Desai Feb 2 2022

Automating churn reduction isn't as far fetched as it may seem. While you can use ProfitWell Retain to help out immensely, you can also set up flows to gather information and put your churned customers into cohorts.

On today's episode of Retention Talk, I speak with Maja Rajić Milivojević, Customer Success Team Manager at Workpuls. We talk about driving automation to form as many connections as possible, gathering information in the cancellation flow, and being proactive about upgrading to longer term plans.

 

Listen now 🎧

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Show takeaways

Key points discussed in the episode

 

Unfortunately, not all clients are created equal in terms of MRR. If you have different price points, you need to create different segments and then create different customer journeys for each segment.”                                   

- Maja Rajić Milivojević

Drive automation to form as many connections as possible

Segmenting clients is the first step in retaining them. Different clients have different MRR and different needs. Utilizing automation tools to determine segments will cut time spent in figuring out customer problems to get quicker answers.

 

Gather information in the cancellation flow

We talk a lot about adding friction to the cancellation process, but Maja illuminated that oftentimes different segments require different cancellation processes. It might be better to reach out to enterprise level clients preemptively, whereas smaller to medium customers require help from support at the point of cancellation.

 

Be proactive about term optimization

If you have a customer for a few months and usage looks good, you can use push notifications or emails to ask them if they’ve considered upgrading. Using a discount is a great way to get folks to upgrade as well.

 

Take Action:

While automation is luxurious, your first step should be to discover which customers are at risk. Once you do that, you will know which customers should be the focus of direct churn reduction strategies.

The following strategies will help you find out who your at-risk customers are.

 

1. Use cohort tracking to identify patterns for at-risk customers

There was a time when figuring out the patterns that lead to churn would have been too much to take on. But, thanks to big data and tools like ProfitWell Metrics, it's easy to identify patterns of behavior that most often precede a customer churning. 

 

2. Use customer segmentation to develop re-engagement plans

One well-known predictor of churn that we don't need machines to tell us about is inactivity. If a user isn't logging into the site and engaging with your product, you can bet they'll eventually decide they aren't getting their money's worth and cancel. 

Identify customers who have been inactive, and how inactive, before the churn risk becomes great. You can use this data to reach out to those customers and help them re-engage with your product. 

 

3. Automate involuntary churn away

Sometimes, the customer doesn't choose to churn. A surprisingly large number of churned accounts occur because of a failed payment.Automation tools allow you to use the power of automation to reduce the number of accounts lost to failed payments

 

4. Measure net promoter score

The net promoter score for your product is the likelihood that existing customers would recommend it to a friend. This is a great indicator of how satisfied your customer base is, as a whole, with your product. By tracking this over time, you can see how well your efforts to improve satisfaction are, as well as take notice when satisfaction is dropping. 

 

5. Find trends in customer support tickets

Aside from the feedback you solicit from customers, you have a great source of feedback in the customer support tickets that you receive. Pay attention to the problems people are having. If many of your support tickets are reporting the same problems, or indicate a misunderstanding about how things work, then those are likely reasons some customers will cancel their subscriptions.

 

If you’d like more insight into your own retention—or even a free retention audit where we can benchmark you with actual relevant data—reach out to me at neel@profitwell.com.

 


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This is a ProfitWell Recur production—the first media network dedicated entirely to the SaaS and subscription space.

 

By Neel Desai

Product Lead, ProfitWell

Subscription market insights you won't find anywhere else.