Four quadrant churn reduction
It can help to think of this as a 2x2 matrix with different strategies.
With the four quadrants, you can broadly group your strategies together (and spot where you’re missing out).
- Keep users happy & active Nurture users to feature adoption and annual plans.
- Cancellation offers When customers click to cancel, find out why and make offers to deflect the cancellation request.
- Payment acceptance Stop subscription payments from failing (and churn happening accidentally).
- Payment recovery Recover failed payments and fraudulent chargebacks
Your goal should be to build a complete churn reduction strategy across all four quadrants. That way, you’ll maximize your chances to reduce churn and improve revenue retention.
Most relevant during:
GTM Fit phase
Scale phase
Most relevant for:
ACVs < $15K
ACVs $15K-$50K
ACVs > $50K