{"id":7775,"date":"2017-03-22T14:40:46","date_gmt":"2017-03-22T13:40:46","guid":{"rendered":"http:\/\/blog.chartmogul.com\/?p=7775"},"modified":"2023-08-10T12:58:05","modified_gmt":"2023-08-10T10:58:05","slug":"reactivate-churned-customers","status":"publish","type":"post","link":"https:\/\/chartmogul.com\/blog\/reactivate-churned-customers\/","title":{"rendered":"How should I handle churned customers?"},"content":{"rendered":"

In SaaS, most focus is placed on preventing churn, and for good reason.<\/p>\n

But it\u2019s hard to find solid advice on what to do after a customer churns \u2014 how to manage a relationship post-cancellation, and how to (ideally) nurture the customer back to reactivation.<\/p>\n

Why is reactivation important?<\/h1>\n

Studies show that re-engaging inactive users is 5 times more cost-effective than acquiring new ones<\/a>. This relates to cancelled subscribers in that you\u2019ve already invested the costs of acquiring them, you know a bit about their behavior, and hopefully \u2014 you already know what you can do to bring them back on board and keep them happy.<\/p>\n

That said, investing in Reactivation MRR isn\u2019t for every business nor every customer. Having a strategy to nurture cancelled customers is more important for seasonal business, for instance.<\/p>\n

When is reactivation not important?<\/h1>\n

No need to chase down accounts of low LTV, who yield low MRR, or who aren\u2019t your target customer. But I\u2019m guessing everyone has at least a couple high-value cancellations they would love to get back.<\/p>\n

Post-churn\u00a0feedback: Make a good last impression<\/h1>\n

Record feedback on WHY the customer cancelled. You can do this through an automated survey upon cancellation, an automated templated email, or a personalized email. You learn where you can improve \u2014 limitations in the product itself, insufficient training or education in how to use the product, poor customer support, etc.<\/p>\n

You also show the customer that you care about their experience, even if you\u2019ve already lost their business. Here is where you make a good last impression. Thoughtful follow-up like this sets the foundation for positive sentiments and revived interest down the line.<\/p>\n

At ChartMogul, we ask our customers why they’ve cancelled. Then we focus on classifying and addressing those issues moving forward. What else can you do with the feedback you received? Design what Niko Moraitakis of Workable calls a \u201csecond order marketing machine\u201d<\/a> \u2014 wherein you try to stay top-of-mind for former customers.<\/p>\n

\u201cWhat you would like to do is to capture [reasons for cancelling], to understand who are the people in that category, and market to them specifically in different ways.\u201d – Nikos Moraitakis<\/p><\/blockquote>\n

Post-churn email marketing: Throw out a line<\/h1>\n

Once you\u2019ve segmented the cancelled customer base to define which accounts are worth pursuing for reactivation, you can move forward with marketing to them. There are a few tactics to keep these churned customers warm to your brand or your product, without spamming or annoying them.<\/p>\n

The standard (and low cost) tactic is to send informative emails:<\/h3>\n