Expanded Churn Taxonomy
Comprehensive framework with 6 categories and 29 subcategories
About This Taxonomy
The Expanded Churn Taxonomy provides a comprehensive framework for understanding why clients leave. It categorizes churn into 6 main areas: Financial/Budget Constraints, Performance/Service Quality Issues, Communication/Transparency Problems, Strategic Misalignment, Competitive/External Factors, and Miscategorization. Use this framework for quarterly reviews, in-depth analysis, and strategic planning.
How to Use This Taxonomy
1. Data Collection
Gather information about all clients who churned in the last 90 days. Include exit interview notes, final communications, and feedback from your team.
2. Categorization
For each churned client, identify the primary category and specific subcategory that best describes their reason for leaving. Some clients may have multiple reasons.
3. Pattern Analysis
Look for trends in your categorized data. Which categories appear most frequently? Are there seasonal patterns? Do certain client types churn for similar reasons?
4. Action Planning
Develop targeted retention strategies for your most common churn categories. Prioritize improvements that address the highest-impact areas first.