Three Factors Driving Churn In Your Subscription Business

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Churn is a word that is synonymous with operating a subscription business. With the cost of customer acquisition on the rise, the health of a subscription business is directly tied to its ability to retain its customers and prevent churn. 

In this guide we will explore 

  • External Factors: Whether operating a traditional brick-and-mortar enterprise or a web-based subscription business, a number of external, and often uncontrollable, factors can create churn.

  • Product Value and Fit: Companies typically focus on external factors for churn, but often, the reasons for churn hit closer to home beginning with the product itself.

  • Limited Use Case: Happy customers mean a happy business, right? It depends. While your product may be delivering the value customers are looking for, a better indicator may be found in how your customers actually use the product.