Churn can be broken down into 2 main types: voluntary churn and involuntary churn. Understanding the difference between these two is essential for developing effective strategies to reduce customer loss.

• Voluntary churn happens when customers actively choose to leave a product or service. This usually occurs due to dissatisfaction, a poor customer experience, finding a better alternative, or a mismatch between the product and the customer’s needs.
• Involuntary churn occurs when customers are lost due to reasons beyond their control. For example, payment failures, expired credit cards, or technical issues that prevent customers from renewing their subscription can cause involuntary churn. Many times, involuntary churn can be minimized by ensuring that payment processes are smooth and automatic reminders are set for customers before payment methods expire.

While voluntary churn requires more proactive approaches, such as improving customer engagement or satisfaction, involuntary churn can often be reduced with simple operational fixes, such as improving payment systems and ensuring proper communication with customers.