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Churn

Sergey Keller,

Growth Product Manager

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MRR Churn =

$ _{Current period}

$ _{Previous period}

Logo Churn =

# _{Current period}

# _{Previous period}

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🍑

Net MRR Churn =

-$ _Churn+ -$ _Contraction+ $ _Expansion+ $ _Reactivation

$ _{Previous period}

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Voluntary

Involuntary

Cancelled subscription via support or billing

Removed payment method

Not renewed contract

Payment declined

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Non-regrettable

Regrettable

Satisfied customers who are leaving for reasons unrelated to your product

Reasons that are within your control to address directly with your product

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Non-regrettable

Our business is seasonal
Our volume of sales deals is too low
We are no longer in business
We are restructuring our business

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Regrettable

PandaDoc does not have the features I need
PandaDoc does not work reliably enough
PandaDoc is not worth the cost
PandaDoc is too difficult to use
PandaDoc support wasn’t responsive or didn’t help
We have not adopted the product

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1.2

1

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Complete story

Monthly / Annual
	Down market		Target market		Upmarket
Regrettable	#	$	#	$	#	$
Non-regrettable	#	$	#	$	#	$
< Your story >

$ — Revenue %

# — Logo %

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Collect

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In-app

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In-conversation

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Competition’s tight 🤼‍♀️

20% chooses another solution

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Tactical assault

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Address regrettable churn

Quality
Performance
Increase feature adoption (product, human touch)
Improve UX
Poor onboarding reflects in churn
Compete: what another solution does better?
Adjust pricing model

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Address non-regrettable churn

Offer discounts
Pause subscription
Free plan
Just let it go

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Support — reactive

Success — proactive

Take care of internal champion
Set up regular “how things are going” cadences
Call them 🤙
Renewal opportunity outreach before 90-120d of contract end date to address the needs
Upsell engaged customers (use data science)
Success is new sales

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Address involuntary churn

Allow your customers to use your product for a period when payment declined so that they could pay later, and you avoid churn.

7 days 😵

21 days ☘️

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Negative churn is possible
Focus on �regrettable reasons
Success is a key to success

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Thank you!