Churn is one of the biggest killers of businesses. Every day it seems like another well-known brand has been forced to downsize or close its doors due to a lack of customer retention. Swrve’s churn propensity feature helps global brands improve customer retention by accurately predicting which users are likely to stop using your app. Action can then be taken through hyper-targeted campaigns in Swrve so that users can be re-engaged before it’s too late.
So how does churn propensity work? Each of your app users are given a propensity score ranging from 0-100 for how likely they are to churn. A score of zero indicates no predicted chance to churn, while 100 indicates predicted certainty of churn. These scores derive from algorithms and models built from decades of expert-led research. This allows every Swrve customer to enjoy a propensity score confidence that’s based on the trusted evaluation and deep statistical observation of customers across industries.
Here are some examples of how churn propensity can be used by brands across industries to increase retention, and as a result, increase customer lifetime value:
Re-engagement for Users Certain to Churn
Users who have been given a churn propensity score of over 95 are almost certain to churn. Having a campaign in place to target these users is really your last chance to re-engage them before they disappear forever. A high-value special offer is often the only way you can convince users to give you another try.
In this media streaming app example, a brand is targeting users with a churn propensity score of over 95 who’ve completed their month-long free trial 3 months ago, but have not subscribed to the premium service. Delivering a rich push notification offering another month’s free trial is a great way to re-engage these users. The push notification’s CTA deep links to an in-app purchase explaining the offer in more detail, with a low-friction CTA to extend the trial.
This is a high value offer, and so it should only be offered to a small amount of users who are certain to churn otherwise. Fortunately Swrve lets you do just that, and as a result will save you spending more than is necessary on your retention costs.
Re-engaging Users with a High Risk of Churn
Users with a score between 80-95 are at a very high risk of churn, and should also be re-engaged before they slip away forever. Again, a targeted offer is your best chance of getting users back into your app, although this time the offer should be less high value to avoid giving away too much for free.
In this freemium mobile game example, players who have a churn propensity score of between 80-95, who have not opened the app for 7 days, and have less than 10 gold coins in their treasure chest are targeted with a push notification. They are offered 100 gold coins for free in an attempt to get them to play another session, progress from their current level, and hopefully become a loyal player again.
Re-engaging Users at Medium Risk of Churn
Users with a medium risk of churn should still be engaged, especially if they have been a high value customer at one stage. These are the customers that you want to keep, and it may be a case of simply reminding them of how great your service or product is. Lure them back in with an offer that shows that you value their loyalty.
In this retail app example, the target is users who have a churn propensity score of between 50-80, and who have made more than 3 purchases from the brand, but have purchased nothing in the past 3 months. This rich push notification highlights the fact that there is a new season of clothes to browse, but also acknowledges how valued they are as a customer by giving them 10% off their next purchase due to their loyalty. It may be just the kind of engagement a user needs to fall back in love with your brand.
Re-engaging Users at Low Risk of Churn
Users who have a low churn propensity score, usually less than 30, are most likely to be engaged users. As a result, it makes sense to use this attribute to influence who you target for customer satisfaction campaigns.
In this eMarketplace app example, their team is targeting users with a churn propensity score of less than 30 who have purchased tickets 3 times through the app, and have been active in the last 7 days. The next time they are in the app, an in-app message asks them to rate the app in the app store. Targeting active and loyal users with this type of campaign is a great way of increasing your app store rating significantly, and therefore optimizing user acquisition.
To find out more about Swrve’s churn propensity capabilities, please schedule a demo.