How to solve user churn and what are the causes of user churn?

Use new modes and new ways to play to retain users, don't stay the same all the time, and look for changes.

1. Analyze the reasons for failure.

Failure is to pave the way for the next success, and analyzing the reason is to be able to succeed next time. Therefore, through the conversation with the customer, we can analyze the reasons why the customer decides to leave, which is service, product quality, **, etc., and then carry out targeted improvement.

2. Actively interact with customers.

Another way to prevent customer churn is to actively engage customers with the product. This requires the use of the relevant knowledge learned on a daily basis, and a clear understanding of the product-related knowledge, such as use, skills, etc., to show customers the value of the product, services, offers and provide the right content. At the same time, make customer interactions part of their day-to-day workflow to give your customers reasons to keep coming back.

3. Provide better services.

Providing better service is the most obvious way to retain customers. In other words, poor customer service is a major cause of customer churn. You know, the customer is God, and he wants to get 200% service on the basis of the purchased product.

Because sometimes, it's not the customer who really needs a product, it's the quality of the service you're paying for.

Fourth, find a reliable platform to help you maintain your customers.

If you don't find a platform to rely on for you to maintain customers, customers will still be lost, and the Golden Sky Alliance can bind customers to you for life, and you don't have to worry about customer loss.

1. Start-up stage. For Internet products, the start-up stage is equivalent to the start-up stage of an enterprise. At this stage, the product needs to quickly change from theory to practice, starting from the user's pain point needs and business goals, quickly launch and test the product, and then seek seed users for rapid verification.

At this stage, users do not know about the product, the product is also in the process of exploration, and the market prospect is not clear, so we generally consider "whether our product can solve the user's pain points" and "how is the user experience of our product".

2. Growth stage. In the growth stage, the product has passed the seed user period, and has also been recognized by seed users, then it is necessary to quickly increase the traffic (sales) and brand awareness of the product through marketing methods!

At this stage, users are gradually familiar with the product, and the market prospect is relatively bright before the product is verified. Then we generally consider the questions of "how should we operate the product to quickly increase traffic and brand awareness" and "how should we convert or monetize after obtaining traffic".

3. Mature stage. In the mature stage, the product has tended to be stable, and it is difficult to have breakthrough growth, so at this time, the main thing is to do a good job of users, activate and retain old users through operational means, and maintain the steady growth of new users!

At this stage, when the market tends to be saturated and users tend to stabilize, we generally consider questions such as "how we should activate our old users and do our best to maintain the steady growth of new users" and "how to monetize users stably to achieve profitability".

4. Decline stage. In the decline stage, the product is going downhill and has gradually lost its competitiveness, and the sales and profits of the product continue to decline, and cannot meet the needs of the market; Better competitors have emerged, and their own churn rates are rising. At this time, the first thing is to do a good job of user return through operational means, and actively innovate and seek new opportunities for transformation.

Here are two steps:

Step 1: Understand the purpose of the research.

No matter what research is done, the researcher must first confirm the purpose of the research, and only by knowing what problem the demander ultimately wants to solve can he do a good job. The research on the causes of user churn is not only a simple understanding of the reasons for user churn, but also the product manager puts forward the research needs of the reasons for user churn.

Step 2: Find out the real reason for the churn.

Regardless of the ultimate goal of product managers, it is important to find out the real cause of churn because they come up with the need to investigate why users churn and why they are churning.

But it is not easy to find out the real reason for the loss of users, sometimes ask users why they no longer use a certain product, they will use "no money" or "no time" and other excuses to perfunctory us, users because of "no money" do not use our products.

The difference between existing and churned users.

To understand whether users will continue to churn, you need to conduct research on existing users, and if existing users and lapsed users are the same type of users, existing users will continue to churn.

How do you know the difference between existing and lapsed users? If the dissatisfaction of existing users is consistent with the reasons for the loss of users, it proves that there is no obvious difference between the current users and the lost users, and if the problem of user loss is not solved, the users will continue to lose.

There are several questions to be solved before really contacting users and doing research:

1.Prevent churn or regain churn?

The problem to be answered is different if the purpose is different, and only by recognizing the purpose can the solution be implemented.

2.Who exactly are lapsed users?

Accurately define churned users and avoid obstacles caused by vague concepts.

3.Design a systematic diagnostic framework.

Establishing a diagnostic framework and logic tree guidance can greatly improve the efficiency of problem solving.

Here's an analysis of each problem, along with practical examples.

1.Preventing churn and recovering churned users are two very different purposes.

The reasons for the loss of users should be implemented in the solution, and the questions that need to be answered in the end of the research are different for different purposes.

You can use the Selling Agent CRM, which extracts relevant data from a messy source of data based on certain events and presents the information contained in it. Through this big data analysis function, after continuous data accumulation, the analysis data of customer churn can be clearly depicted, so that enterprises can make improvements to it.

What is churn rate.

Customer churn rate, also known as customer churn rate, refers to the ratio of the number of customers lost to the number of customers who consume all products or services. It is a quantitative expression of customer churn, the main indicator for judging customer churn, and directly reflects the current situation of enterprise operation and management.

2. Measurement of customer churn rate.

Churn rate is divided into absolute churn rate and relative churn rate, so churn rate can be calculated in two ways:

1. Absolute customer churn rate: (the number of lost customers and the number of all customers) 100%.

2. Relative customer churn rate: [(number of lost customers, total number of customers) relative purchase amount of lost customers] 100%.

If a bank's number of customers decreases from 500 to 475, then the number of customers it churns is 25, and the absolute churn rate is 25 500*100%=5%. Absolute churn rates treat every churned customer equally. Relative churn rate is weighted by the relative purchase amount of customers.

If the 25 churn is 3 times the average of the customer's unit purchase, then the relative churn rate is 25 500 * 3 * 100% = 15%.

3. Steps to reduce customer churn rate.

4 Steps to Reduce Customer Churn:

1. Determine and measure its customer retention rate. For example, magazines: renewal rates; College: The rate of first-year to second-year progression, or graduation rate.

2. Find out what causes customer churn and find out what can be improved.

3. Estimate the loss of profit when it loses customers it shouldn't lose. When a customer is lost, the lost profit is equivalent to the customer's life value, that is, the profit generated by the customer's continued purchase over a normal number of years.

4. Calculate the cost of reducing the churn rate. As long as these expenses are less than the profit lost, the company should spend the money.