The churn rate or cancellation rate is the percentage of customers or subscribers who stop using the services offered by a company during a given period of time.
Although it is a term associated with email marketing, it is also used in other sectors referring to the loss of customers. For example, if we have 500,000 subscribers to our weekly Newsletter and we have received cancellation requests from 5,000 of them, we divide 5,000/500,000, obtaining a 10% churn rate.
How to reduce churn?
Although having a 0% rate is almost impossible, we can apply these practices to reduce our church rate or cancellation rate as much as possible:
- Find out the reason for unsubscriptions to your newsletter: Ask your consumers, through tools such as surveys, they will be the ones who will give you the keys to what you are doing wrong.
- Know your weaknesses: When a user registers, it is because you offer something different that interests them. When they unsubscribe, perhaps it is because they no longer offer the same quality or because your competition has a better service.
- Update yourself: Something that works doesn't have to work forever. Change the design and content you offer to your subscribers. This will keep the customers you already have satisfied.
- Propose a good email marketing strategy: The periodicity of the shipments, the recipients, database management...
In short, the balance between attracting subscribers related to our product or service and maintaining those we already have is the key so that our churn does not skyrocket.