What is the Engagement (Pre-churn) Metric?
The Engagement (Pre-churn) metric represents the count of subscribers who churned, categorized into engagement buckets based on the number of entitlement checks completed in the 30 days before churn. This metric provides insight into the relationship between user engagement and churn, highlighting whether low or high engagement is associated with higher churn rates.
This metric is available for the clients who have access to ChurnIQ. You can find it in the Cleeng Dashboard under ChurnIQ.
How is it Calculated?
The calculation involves categorizing churned subscribers into predefined engagement buckets:
- Collect Data: Gather data on churned subscribers, including the number of entitlement checks completed in the 30 days before churn.
-
Define Buckets: Categorize subscribers into the following buckets:
- None (0-1 checks)
- Low (1-2 checks)
- Good (3-5 checks)
- High (6-14 checks)
- Very High (15+ checks)
- Count Subscribers: Count the number of churned subscribers in each bucket.
How to Use the Engagement (Pre-churn) Metric in a Subscription Business
The Engagement (Pre-churn) metric is crucial for understanding the correlation between user engagement and churn. You can use it to:
- Identify Engagement Patterns: Analyze the distribution of churned subscribers across engagement buckets to identify patterns and trends.
- Evaluate Engagement Strategies: Assess the impact of engagement strategies on churn rates by monitoring changes in the distribution of churned subscribers across engagement buckets.
- Identify At-Risk Subscribers: Use the data to identify subscribers with low engagement levels who may be at risk of churning.
- Optimize Retention Efforts: Tailor retention efforts based on engagement levels to target at-risk subscribers and reduce churn.
FAQs
Why is it important to categorize churned subscribers by engagement levels?
Categorizing churned subscribers by engagement levels provides insight into the relationship between user engagement and churn, helping you identify opportunities to improve retention.
How does Engagement (Pre-churn) differ from overall Engagement?
Engagement (Pre-churn) specifically focuses on the engagement levels of churned subscribers in the 30 days before churn, while overall Engagement measures the engagement of all users.