Dealing with churn, is one of the most important elements of building a subscription business. While some churn is inevitable over time, too much churn indicates a more fundamental problem: customers aren't finding value in your product.
I wrote an article over at GigaOm on this subject including some examples about how to reduce churn from my experience at MySQL and Zendesk.
Having churn is like rowing a leaky boat. After a while, you spend more time bailing water than moving forward. By contrast, organizations that focus on reducing churn will find that their revenue grows every quarter.
To accurately measure what’s going on, you should begin by breaking out churn (customer cancellation) from …[Read more]