TMBA 249: Getting Started With Customer Churn Analysis

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We’re talking about Churn rate, and everything we can learn from it. Bossman and I are by no means experts on the topic, but we’ve dug up a plethora of information to share on Churn rate analysis. We’ll discuss how to use this information to provide more value to your clients and keep them around for longer. We also answer some listener questions about the FBAR deadline and how we approach the frequency at which we create podcast content.

Listen to this week’s show and learn:

  • What Churn is and how it can sneak up on you.
  • Why your Churn rate is much less useful if you aren’t creating cohorts.
  • How premium product tiers can change your entire game plan.
  • The mistake that we made when we started our Churn rate analysis six months ago.
  • Why retention is king and how to utilize a customer win-back team.

People on this episode:

Mentioned in the episode:

DC Junto Bali today at the end of a quiet road

DC Junto Bali today at the end of a quiet road

Listening options:

Thanks for listening to our show! We’ll be back next Thursday morning 8AM EST.


Dan & Ian

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Published on 06.19.14
  • ww

    Is there a link to the part mentioned in #9 about referral-getting strategies from Jacob Poole (sp?)?

  • Douglas Yuen

    Thanks for mentioning our podcast!

    Also, I hate to be picky and point this out … but the compounding needs to be taken into account. Using your example of 4% monthly churn, you would actually only be losing about 39% yearly (1 – 0.96^12) instead of 48%.

  • Victor

    Oh man love the bit about circle jerk podcasting. Making me nuts. I have a new book will you interview me on your podcast? Sure, will you call me a guru if I call you a guru? Sure! Wait, mention I’m “killing it” and when you write a book and I interview you on my podcast, I’ll say you’re “crushing it.” Then we can both borrow each others audiences and have bestsellers! Then we can all write five star reviews of each others books AND podcasts and then we can all charge more at our speaking events where we tell people how to kill it, crush it, get more fans, build our platforms! By the way — what do we do again? Stay away boys! You got something real here! Avoid the BS!!! It doesn’t wash out!!

  • Pat D

    This content is near and dear to my heart (and bank account). Been working at an online marketing company for +3 years, where services are month to month. Agree with many of your points. I’ve also found it useful to look outside subscription based businesses or other industries for WHY clients stick – we’ve borrowed from medical, video companies and car detailers to improve. I think you also first must accept churn on the whole before you can improve it, otherwise you’re overreacting to individual scenarios versus wholistic data/trends.

  • Hey Dan,

    Thanks for the shout.

    Have you ever thought about rolling out Mixpanel (generous free plan!) or Kissmetrics to track DC users? Google Analytics probably isn’t the best tool for tracking paid membership sites.

    Also, I noticed that Jason Calacanis keeps talking about net promoter score and how important it is to a businesses’ long terms success. I’m thinking of adding a net promoter score survey to my post-purchase auto-responder in my business.



  • Came to the site to comment this.

    Before doing the math, I was expecting the number the be way smaller than 39%, which still is pretty high. So, take away: pay attention to monthly churn!

  • Ian

    You guys are right, the calculation that was thrown out didn’t accounting for the diminishing number of members.

  • Here’s Jake’s twitter profile:

    Some of Jacob’s strategies include:

    Killer onboarding experience.
    Personal phone calls to survey customer mindset.
    Inventorying reasons customers are unhappy and why they leave, then having a response to each.
    Pattern interrupts– snail mail, handwriting, etc.
    Random phone calls.
    Physical gifts / packages corresponding to important personal dates.

    I’d love to say more but I think I overpromised on the episode, this was a post Jacob made int eh DC… but I think the basic gist is to be all over this shit! :D

  • thank you for that tip David we are doing it thanks to your suggestion.

  • great point there Pat

  • hahaha :D

  • no please do be picky, I really appreciate that. totally misspoke there.shows how green i am.

  • Nice! Let me know how it works out.

    Maybe the following events would be a good starting place?
    * new account activated
    * posted new discussion / reply (in forum, status updates or group)
    * sent / received private message
    * account deactivated (user churned)

  • I like the new post one, we didn’t think of that! Appreciate it.

  • Ram Kesarwani

    Thank you so much for the valuable information, It really helps us to make an better strategies to grow our company, we are working as a Translation India

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