8% Churn Rate Reduction Achieved Through Targeted Behavioural Messaging

Our client was undergoing a product change, requiring migration of customers to a different product. This migration led to some difficult conversations with customers and the risk of an unusually high churn rate in the upcoming renewal cycle. In addition, technical limitations meant that the scope of changes that could be made to the renewal communications journey was very small.

Insight: Small but targeted changes to language have outsized effects on retention

Owing to the technical limitations, the changes we could make were limited to the wording used in a few sentences in the renewal invitation. However, behavioural principles that we have proven to consistently work in multiple markets and products could be applied even in this limited setting.

The Solution: An upgraded renewal invitation

Very targeted changes to these few sentences were sufficient to reframe the communication away from price and towards value.

• Value framing: positioning renewal as securing unique value, not just paying a bill
• Implementation intentions: making clear the steps and consequences
• Social information: reducing uncertainty by referring to others

The Results

8% improvement in churn rate from a change in a handful of sentences in a single renewal invite

Big Takeaway

Even in very restricted situations, behavioural principles that are applied very precisely can significantly improve the churn rate and generate considerable retention improvements.