Outsourced Churn Management: Who, How, and Alternatives

You can work with someone from the Reforge Collective, Growthmentor, churn focused advisors like Dan Layfied. Another way to search would be to look for people who have written about churn on Substack or has created Reforge artifacts.

Outsourced Churn Management: Who, How, and Alternatives

What is Outsourced Churn Management?

Outsourced Churn Management involves hiring external experts or agencies to handle customer retention and churn reduction strategies.

Pros:

  • Expertise: Access to specialized skills and knowledge.
  • Focus: Allows internal teams to concentrate on core business activities.
  • Scalability: Easier to scale efforts up or down as needed.

Cons:

  • Cost: Can be expensive compared to in-house solutions.
  • Control: Less direct control over customer interactions.
  • Alignment: Potential misalignment with company values or goals.

These advantages can complement in-house efforts, especially when rapid implementation or specialized knowledge is required

How To Outsource Churn Management?

  1. Define Objectives: Be fluent in terms like net churn, gross churn, involuntary vs voluntary churn to understand what you want.
  2. Select the Right Partner: Choose someone with proven expertise in churn management in your industry. You can work with someone from the Reforge Collective, Growthmentor, churn focused advisors like Dan Layfied. Another way to search would be to look for people who have written about churn on Substack or has created Reforge artifacts.
  3. Establish Clear Communication: Set up regular meetings and reporting structures.
  4. Integrate Systems: Ensure the outsourced team has access to necessary data and tools to perform effectively.
  5. Monitor Performance: Regularly review the outsourced team's performance against KPIs and adjust strategies as needed. You can use Churnkey's free Churn Metrics dashboard to track performance.

What If It Doesn't Work?

This is possible. In fact, Hotjar set up an in-house churn management team that didn't drive results as expected. Shopify over-expensed on dunning processes and realized that they didn't see any meaningful results in the long term.

This is where Churnkey comes in – with clear ROI and low setup costs, it can help automate the entire churn management process without a full blown out team.