LSA16: What does the Data Say about Churn?
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Transcript of LSA16: What does the Data Say about Churn?
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What does the Data Say about Churn?
Kristin CoitHead of Partner Acceleration
Google AdWords Channel Partnerships
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Accelerating Growth through Acquisitions,
Upsell, and Retention
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GOALS:● Share how Google views churn
● Give you 1-2 ideas to consider
● Invite you to work with Google
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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.
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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?
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Two similar partners; different growth composition
Acquisition Upsell ChurnAcquisition Upsell Churn
Acquisition Focus
Upsell + Retention Focus
Partner A Partner B
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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
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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
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Main reasons for controllable churnSingle biggest driver of churn is a function of expectations, perceived value.
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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.
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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
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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”
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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...
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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
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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.
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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.
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THANK YOU.Kristin Coit
[email protected] of Partner Acceleration
Google AdWords Channel Partnerships