lsa16: what does the data say about churn?
TRANSCRIPT
What does the Data Say about Churn?
Kristin CoitHead of Partner Acceleration
Google AdWords Channel Partnerships
Accelerating Growth through Acquisitions,
Upsell, and Retention
GOALS:● Share how Google views churn
● Give you 1-2 ideas to consider
● Invite you to work with Google
Setting the Stage: Growth Decomposition Ad
Rev
enue
Acquisition
UpsellChurn
Previous Revenue
Current Revenue
Path to growth made up of three primary elements: Acquisitions, Upsell, and Retention.
Google defines churn as an AdWords account that has been
inactive for 6 consecutive months.
A lapsed account is considered an account that has been inactive for 1 month.
How does Google define churn?
Two similar partners; different growth composition
Acquisition Upsell ChurnAcquisition Upsell Churn
Acquisition Focus
Upsell + Retention Focus
Partner A Partner B
Impact of Churn on Growth Churn is a detractor of growth; aim to retain existing base.
The probability of selling to an existing customer is 60 – 70%. The probability of selling to a
new prospect is 5-20%. – Marketing Metrics
Not all “churn” is true churn
Controllable Churn
termination because of sale, relocation, reorganization, seasonal, or permanent closure of the business
termination because of dissatisfaction, price-value feedback,
or competing products
From a previous Churn study of select partners:52% of Google defined churn is addressable by partner
Main reasons for controllable churnSingle biggest driver of churn is a function of expectations, perceived value.
Relationship between reporting quality and churn rate
Source: Internal Google study, U.S.
Communicating ROI
In two separate churn studies, U.S. and
APAC, reporting was identified as key to
delivering satisfaction and meeting
expectations for clients.
Customers who receive weekly or monthly reports are more likely to be satisfied with their reporting
% rating reporting as Excellent or Very Good
Q24 What type of reporting did you see? Q26a How would you rate the reporting from [PARTNER] on your Google Advertising?
54% 48% 14%
Weekly Monthly Less often
Frequency of reporting
Best Practices:
● Diligently track customer contracts and pro-actively contact customers in advance of their contract expiration or renewal (consider contract auto-renewals).
● Contract length: month-to-month v. 6-12 mo.
26% were not asked to renew or extend their campaign
“No response from them therefore we did
not renew”
“I wanted to renew the contract but I couldn’t
contact the sales rep to put in more money”“They didn’t inform me
about renewing”
How can you win accounts back?
There are opportunities to recover lost business!
From a previous Churn study of select partners:
58% indicated they would resume if...
58% indicated they would resume if they...
● saw results or better explanation of the results
● received additional/different pricing options: consider offering a winback incentive, consider offering them a month free where the account is optimized
● received more/better customer support: code for churn reasons, or survey post cancellation to deep dive into history
Service Best Practices
● Develop processes to handle downgrades, cancellations, and discounts of product.
● Retention team to retain high probability churn customers, survey your customers regularly. Keep your finger on the pulse.
● Provide ad hoc rewards to long standing customers. The little things do matter.
How Google helps partners support retentionPredictive Churn Program: Receive Monthly “Accounts at Risk” list, plus custom Churn Symptoms Report.
Tenure Analysis: Analysis on advertiser tenure, status of last month, and historical performance.
Churn History Analysis: Historical view of partner churn against peer set benchmark.
Customer Satisfaction Survey: Facilitate CSAT surveys to capture feedback from advertisers and identify areas of improvement.
THANK YOU.Kristin Coit
[email protected] of Partner Acceleration
Google AdWords Channel Partnerships