Tackling user churn: identifying root cause
The challenge:
A marketplace platform was facing perceived increasing churn rates, prompting leadership to seek a strategic investigation into user retention challenges. The situation demanded a data-driven approach to distinguish between actual churn and normal usage patterns across different platform verticals.
Our approach:
To address the complex issues of user churn and retention, we employed a comprehensive methodology focused on understanding user behaviour and platform dynamics. This involved:
Comprehensive data analysis across platform verticals
Stakeholder interviews and alignment sessions
User behaviour mapping and segmentation
Hypothesis testing and validation
This approach allowed us to separate genuine churn from natural usage patterns and identify key areas for improvement.
Outcomes:
Churn pattern clarification: we successfully differentiated between real churn and normal lifecycle behaviour across various platform verticals
Team alignment gaps: the process revealed significant misalignments in how different teams perceived and addressed user retention
Targeted retention strategy: we developed a focused research plan to address genuine churn in priority verticals
Data-driven decision making: our approach provided leadership with clear, actionable insights to guide strategic decisions
Impact:
Our investigation prompted a strategic pivot for the platform. By revealing that perceived "churn" was largely natural lifecycle behaviour in specific verticals, we redirected focus towards addressing business alignment issues. This insight led to the development of targeted retention strategies for priority verticals where genuine churn existed, ensuring more efficient resource allocation and a more effective approach to user retention.
The e-commerce industry's website sales value in the UK non-financial sector is £459.2 billion (ONS).