Free Trials & Churn: Unmasking the Silent Assassin of Customer Retention
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Free Trials & Churn: Unmasking the Silent Assassin of Customer Retention
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In this episode of The Customer Daily, we delve into the paradoxical relationship between free trials and customer churn, scrutinizing common industry practices and upending assumptions.
We highlight a study by Greg Daines revealing that customers who opt for free trials are likely to churn at a higher rate compared to those who pay upfront, sparking a debate about the perceived benefits of these trials.
The discussion further extends to a critique of focusing primarily on 'Revenue Churn', suggesting a more holistic approach that takes into account logo churn and long-term growth. Experts in customer success and retention share their insights, emphasizing the role of active customer engagement and the need to look beyond conventional metrics to understand the true health of the customer base.