
Quiz Answer to:
1
User Retention Strategy
Q)
You’re managing a subscription-based service, and after conducting an analysis, you find that your churn rate spikes after the first 90 days. What steps would you take to investigate the cause, and how would you address this drop-off to improve long-term retention?
Short Answer:
After identifying a churn spike after 90 days in a subscription-based service, first, analyze the customer journey to pinpoint when and why users are leaving. Segment churn data to see if specific user types are more affected. Conduct customer surveys or interviews with churned users to understand pain points. Analyze product usage data to identify whether customers are engaging with the right features, and look at support tickets or complaints for recurring issues. Once the causes are identified, implement changes such as personalized onboarding, proactive customer support, or engagement triggers for key actions that correlate with retention. Provide ongoing value through loyalty programs or incentives for long-term commitment. Lastly, measure the impact through retention rate, churn rate, and customer satisfaction metrics, adjusting as necessary.
Detailed Answer:
Key Steps to Investigate and Diagnose the Cause of Churn
Segment Users for Deeper Insights:
Analyze cohorts based on acquisition channels, subscription plans, demographics, and usage patterns.
Identify if specific user segments (e.g., those acquired via paid ads) show higher churn rates.
Examine product usage data to determine if churn occurs due to lack of feature adoption or reduced engagement over time.