Resources: Uncontrollable Churn
What is uncontrollable churn?
Uncontrollable churn is the churn that happens due to factors outside your company’s control. Think of it as the “stuff happens” category of churn. You didn’t cause it, you can’t always prevent it, but you can understand it.
Real-World Examples of Uncontrollable Churn
Let’s face it, sometimes life throws a curveball (or a global pandemic). Here are a few scenarios where churn might be beyond your grasp:
Businesses Closing Down
If a customer goes belly up, there’s not much you can do. You can’t exactly send an invoice to a company that no longer exists.
Acquisitions
A customer gets gobbled up by a mega-corporation that’s completely outside your ideal customer profile (ICP). Suddenly, your solution might not be the right fit anymore.
The Never-Implemented Project
You closed the deal, the champagne corks popped, but then…crickets. The customer never actually implements your product. Maybe their team got reshuffled, priorities shifted, or internal champions moved on. It’s frustrating, but sometimes, you just can’t force adoption.
Changed Business Model
The one constant in life is that there’s no stopping change. There’s especially no stopping change when your customer changes their entire business model. If your customer can no longer use your product due to the fact that they’ve changed their entire business, there isn’t much you can do about that.
Why Understanding Uncontrollable Churn Matters
While you can’t always prevent uncontrollable churn, understanding it is crucial. Here’s why:
Peace of mind
It helps you accept that some churn is simply inevitable. Not every customer loss is a reflection of your product or service.
Strategic focus
By identifying uncontrollable churn, you can focus your energy on areas where you can make a difference – like improving onboarding, boosting customer engagement, and providing top-notch support.
Data-driven decisions
Tracking uncontrollable churn helps you paint a clearer picture of your business performance and make more informed decisions about your target market, product roadmap, and customer success strategies.