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4 Reasons you get customer churn in software products

4 Reasons you get customer churn in software products

Gideon Luke

With cloud-based systems and browser-based software rising, there's now more focus on managing customer churn. Customers who pay monthly can leave unpredictably leading to high churn rates.

Naturally, any vendor needs to pay attention to churn KPIs and fuel the sales funnel with enough leads to compensate however understanding the reasons why people leave is obviously key.

This can range widely depending on what a system does however here are 4 we see more commonly - all of which can be addressed with planning and a strong customer life-cycle.

1. Pricing - here's a good example. I bought a well-known internet security product last year for around £20 in Currys. It's renewal time and the cost is £69 so guess what I'm going to do? Yup, back to the bargain basket! This is a prime example of how special offers fight with a renewal of subscription services.

2. Not seeing a product's value - It may be that the customer bought your product to address a specific problem and didn't care about the other wonderful attributes of your product. When they are due to renew, they may well have forgotten why they bought it and don't know why they should. You've got to keep nurturing a customer and educating them about the merits of your products

3. Customer Experience - This is a big reason people leave brands. Everyone customer will have some sort of experience so why not design that experience in your customer lifecycle to make sure they do have a good experience?

4. Your Competition offers a better alternative - Nothing stands still in software so you've got to keep a watchful eye on your competitors and make sure your product matches both your customers' needs and their expectations.

What is your reason you abandoned a company or product? Would your customers leave for the same reason?