Sometimes customers will churn. It’s the nature of the subscription economy, and one of the reasons the customer success role exists and is so important.
That’s why it’s also so important that you, as a customer success professional, are able to gather data and understand the reasons around why you customers are churning so you can start affecting change.
Here are a few situations in which you can use the data collected to make improvements in not only the customer success department, but in several other departments as well!
Affect Product Changes/Improvements
It is always easier to get buy-in from the team on changes when you have some data behind you. If many of the reasons for churn have to do with product issues or lack of features, you can present this to the product team and start a discussion about what improvements could be made, or what features the company can consider adding to the product.
Using the Churn Data to Help Identify Your Ideal Customer
The relationship between sales, marketing and customer success should be a close one. There are so many ways your teams can help one another.
Make sure sales is selling a realistic product and to the right customers, and the marketing team is creating messaging targeted towards those customers.
Finding the right types of customers can take some time. You start with idea of your ideal customer, but only by seeing which customers are truly successful and getting the full value out of your product can you start to paint the full picture.
You have this data. You have collected the data on not-so-ideal customers through your churn survey, and are working with the customers that are successful. Use this to help sales and marketing determine which types of customers they should be targeting and selling to.
Using the Churn Data to Improve Your Onboarding
If you're seeing that many customers are churning because of poor onboarding or adoption, then it is time to re-think your current strategy. Our recommendation is that every time this is a reason for churn, use the comment field to record where this customer felt as though the process fell short.
Take this feedback and use it to improve.
Depending on your product and the feedback you received, you might need more types of roles in your Customer Success division. Or, you might need more Customer Success Managers. Either way, you have data behind you to help you make these decisions.