Ep 153: Fastest Way to Reduce Churn

Jan 21

The Fastest Way to Reduce Churn in Your Membership

Losing members every month is the #1 challenge keeping memberships from scaling. If you’ve ever felt stuck trying to stop cancellations or save members who are already halfway out the door, it’s time to take a different approach.

I’m Shana Lynn, and I’ve helped my clients add over $3.4 million in annual recurring revenue from their existing customers. Today, I’m going to walk you through:

Why churn matters.
The fastest way to reduce churn (spoiler: it’s not about saving cancellations).
The three beliefs your members must adopt during onboarding to stay engaged.

Why Churn Matters

When it comes to membership success, retention is everything. Here’s why:

Keeping Customers is More Profitable: Every new customer comes with an acquisition cost. But when you keep customers longer, you increase their lifetime value (LTV) without spending more on acquisition.
Retention Fuels Growth: A higher LTV means you can afford to spend more on acquiring new customers, breaking past the growth ceiling that holds back so many membership businesses.
Lost Members = Lost Revenue: Losing members in their first month has the biggest impact on recurring revenue. For example:

A 10% churn rate on 500 members at $100/month means you’ll lose $5,000 in the first month alone.
That loss compounds every month thereafter.

Why Saving Cancellations Isn’t the Answer

When membership owners realize how important churn is, they often panic and default to reactive strategies:

Retreat Mode:

Avoiding contact with members out of fear that communication might trigger cancellations.

Rescue Mode:

Pouring resources into saving cancellations with discounts, extra calls, or more content.

The Problem?

These approaches drain resources and only save a few members.
By the time a member is leaving, it’s often too late to change their mind.

Think of it this way: If you’re already walking out of a store and someone stops you to offer help, how likely are you to turn around and go back in? Exactly.

The Fastest Way to Reduce Churn: A Proactive Approach

The key to reducing churn is proactive retention, and it starts with onboarding.

Why Onboarding Matters

The first 31 days are the most critical in your members’ journey.
Members join your program full of excitement and momentum. Your onboarding process either capitalizes on this energy—or lets it fade.

What Happens During Bad Onboarding

Members don’t feel connected.
They lose motivation and momentum.
They don’t see progress, leading to buyer’s remorse.

Good onboarding, on the other hand, carries your members through to the second payment and ensures they’re set up for success.

How to Nail Your Onboarding

A strong onboarding process focuses on three key beliefs that every member must adopt:

1. “I’m in the Right Place”

Show members that your program aligns with their goals and that you’re the right guide to help them achieve those goals.
Address buyer’s remorse by reaffirming the value of your membership.

2. “This is Possible for Me”

Overcome members’ doubts about their ability to succeed in your program.
Highlight specific, relatable success stories and show members how your resources can work for their unique situation.

3. “I Know My Next Step”

Provide clear, actionable guidance on what to do next.
Avoid overwhelming members with too many choices, which often leads to inaction.

Where to Build Your Onboarding

Your onboarding process should exist in three key places:

The Membership Hub:

Make the hub the central location for onboarding.
Guide members on how to use the hub and access resources, ensuring it feels like the “home base” of your program.

Email (and/or SMS):

Use email to reiterate and reinforce the onboarding steps shared in the hub.
Keep the emails simple and focused on driving members back to the hub.

Community Platform:

Show members how to engage with your community and align with its culture.
Emphasize how the community supports their progress and connects back to the resources in the hub.

The Financial Impact of Onboarding

Retention starts on day one, and here’s why it matters financially:

The biggest revenue loss from churn happens in the first month.
A strong onboarding process ensures members stay long enough to make progress, reducing cancellations and increasing LTV.

Take Action to Reduce Churn

If you’re ready to reduce churn and keep more members, here’s what to do next:

Focus on the first 31 days of onboarding.
Build a retention system that supports proactive engagement.
Download my free guide at retainguide.com for five proven strategies to increase retention in your membership.

By shifting your focus to proactive retention and nailing your onboarding process, you’ll reduce churn, increase LTV, and create a thriving, scalable membership.