Understanding early warning indicators

Early warning indicators are measurable signals that help predict if customers might stop using your product. Like warning lights on a car's dashboard, these indicators alert you to potential problems before they lead to customer churn.

The three main categories of warning indicators are:

• Product usage indicators: Track how customers interact with your product, including login frequency, feature adoption rates, error rates, and time spent in the application. These metrics reveal actual user engagement patterns and potential friction points in the user experience.
• Customer feedback indicators: Monitor direct and indirect customer sentiment through support tickets, NPS scores, and customer satisfaction surveys. These signals help identify frustration points before they escalate.
• Business health indicators: Measure financial and operational metrics like billing status, contract renewals, and account expansion. These indicators show the strength of the business relationship.