Yet another excellent article by Des Traynor, this one about how to think of "churn" and how to reduce it by engaging with customers at the right point.
Activity churn is where the rubber hits the road. Typical Churn stats use account cancellations as a measurement but cancellation is only ever a trailing indicator. It’s the last thing that happens.
Customers don’t make a snap decision to quit an app and delete all their data on the spot unless the app has really screwed up for them. Typically customers gradually stop using it, it goes from every morning to every week to once a month. Eventually their data in the app grows out of date and soon they realise they’re paying $29 per month for something they don’t need and don’t use. At this point you can’t recover them easily, but this is the first time a churn metric will recognise them.
Des offers some practical advice for how to address the churn. Read the whole article here.