How to Lower Churn for SaaS as well as Software (Interview with Growth Expert Frederic Linfjard) --
Recently, I had lunch with the growth expert (and Director of Growth at Planday) Frederic Linfjard for two incredible conversations.
We followed it up with an in-depth look at the process of churn. In particular, we discussed the way Fred reduced it to 50% during a prior expansion role in the software firm.
As an example, let me share one strategy Fred has shared with me in our chat:
This is known as the "win-back time." This is the period between a user canceling their subscription until the point at which the subscription is officially ended.
As Fred put it: "If a customer chooses to end their subscription for the year -- but they have six months left to access the service -- this implies that I will have six months to begin altering their mind."
The period of win-back is the perfect time to win.
They have access to the program, and it is possible to observe their actions as well as provide helpful tips as well as offers.
When their subscription expires the situation turns significantly harder to get them back.
Fred's method is to tailor his messages based on how much time he has left.
The nearer to the expiration date and the earlier the date, the more aggressive the customer gets with messages and offers.
"If they have six months left, I'll start by providing them with information. However, as the date approaches, I may be more aggressive with discounts or additional time on their subscription should they make a change of opinion ."
There's more about Fred's reduction in churn engine in our chat. Here's the full recording:
