churn rate
Some people talk about mozambique business email list transparent or voluntary churn and opaque or involuntary churn ( see the Get Response post where we found this concept ).
Transparent churn : includes unsubscribe requests, bounces and SPAM complaints.
Opaque churn: in this case we are talking about the absence of engagement with the user. Our emails end up in the spam folder or in an email account that the user does not check regularly (if they ever do so).
How do we calculate our churn rate? The problem we find is that the usual way of measuring churn only includes transparent churn, since we cannot have the exact data for opaque churn. However, it is convenient to define the “inactive” users in our database and after carrying out some reactivation action , include in this churn calculation those who have not been able to recover. A user who registered 5 years ago and has not opened any email for 2 years will most certainly be part of that opaque churn.
So the formula for calculating churn would be like this
UNSUBSCRIBE + SPAM COMPLAINTS + BOUNCES + INACTIVE
TOTAL LIST SIZE
To minimize churn rates, here are some tips:
– Dedicate efforts to creating relevant emails and optimizing engagement : Offer a preference center, apply behavioral segmentation, survey your users, personalize your messages, use appropriate senders and subjects…
– Carry out periodic reactivation campaigns on the segment of inactive users in your database.
– Consider double opt-in to reduce the number of bounced emails.
– Apply discard rules in your sending platform so that bounced emails are unsubscribed . For example: 2 hardbounces in 30 days, 4 softbounces in 30 days.
According to some studies, the average churn rate is around 25-30%. At the same time as we seek to grow our database, to keep it clean and healthy we must implement actions to minimize the churn ratio, without forgetting those lost users who are initially “invisible.” We must also be aware that transparent churn has its positive side: if the user is really not interested in receiving our communications, there is no reason to keep them in our database, and if the user decides to leave, it is not a drama. On the contrary, we will save the efforts that we dedicate to a user who has no potential to convert into a client.
