Segmenting risk levels

Risk segmentation helps teams prioritize customers based on their likelihood of churning. Risk levels typically fall into 4 categories:

• High-risk customers show critical warning signs such as declining usage, missed milestones, account deletion requests, or unresponsiveness to communications. These accounts need immediate, intensive support with daily check-ins.
• Medium-risk customers display concerning signals like slight usage drops, delayed renewals, or slower feature adoption. They require weekly monitoring and proactive outreach.
• Low-risk customers maintain stable patterns with regular usage and feature adoption but may not be utilizing the product's full potential. Monthly health checks are sufficient.
• Healthy customers show strong engagement through consistent usage, positive feedback, and feature expansion. They're prime candidates for upselling opportunities.

Each risk level needs its own monitoring frequency and response plan. The key is matching your team's effort to the customer's risk level - this helps you use resources efficiently while preventing churn.