Churn Risk Assessment (Retention)

Churn Risk Assessment (Retention)

1. 01

   Pull 90-day payment failure and dunning data from the billing platform

   Export failed transactions, retry counts, and the number of customers entering dunning. This reveals the scale of involuntary churn before any other analysis.

2. 02

   Segment churned clients by pricing plan and contract length

   Group cancellations by plan tier and tenure. A cluster of short-tenure churn on one plan often signals a pricing or onboarding mismatch rather than a service problem.

3. 03

   Interview at least three recently churned clients about the cancellation reason

   Ask whether the trigger was price, usage, or a billing experience issue. Direct quotes give the agency concrete language for client retention proposals.

4. 04

   Compare your effective billing metrics against industry benchmarks

   Use the platform's analytics, such as Paddle's ProfitWell Metrics, to check your net revenue retention and churn rate against comparable subscription businesses.

5. 05

   Identify the top three root causes of churn from the data and interviews

   Rank causes by revenue impact. Common patterns include failed payments, lack of usage, or a competitor offering a better price.

6. 06

   Draft a retention action plan targeting the top root cause

   For payment failures, propose dunning optimization or card updater tools. For usage issues, suggest onboarding improvements or feature adoption campaigns.

7. 07

   Present the findings and action plan to the client with a clear owner and timeline

   Assign a named owner for each action and set a 30-day review date. This turns the audit into a deliverable that can extend the retainer.