Bluntly put, churn means how many users stop using your product/service and retention means how many people keep using your products. Every company should focus on either minimizing churn or increase retention. At first glance these actions seem to have the same end result, it’s like rephrasing something without changing the meaning. I think it’s not like that. I think that saying one instead of the other can have deeper implication for the business. Here is why…
Focusing on retention is better than focusing on churn
Implications of using minimizing churn.
When the goal is to minimize churn, the entire company will focus on the things they can do to stop people from leaving. This has an inherent bad feeling tied to it. When your users stop using the app or service, it means that you are doing something wrong. This will add to the pressure and limit your creativity. Also, by focusing your attention exclusively on how to stop whatever is driving users away, you are limiting your pool of ideas, because you only consider what you are already doing instead of what you could do.
When you want to minimize churn you basically say how can we stop people from leaving, what can we do to make them hate us less?
Implications of using increasing retention
On the other hand, when you want to increase retention the main question is: how do we make people love our service even more? How do we make them stay longer? Do you see the difference?
Now you focus on a positive thing. This can spark creativity and my bet is that will bring better results.
I know that all this is a matter of phrasing, but if you believe all the NLP enthusiasts, a small difference in how you say things could make a huge difference.
So, what do you think about this theory?