When Customers Churn at Renewal: Was It the Price or the Project?

Determining why customers churn at renewal is complex, as it's often unclear whether a price increase or the completion of their initial project is the primary cause. Pinpointing the true driver is crucial because it dictates whether the business should adjust pricing strategies or focus on demonstrating new value to retain users. Frequently, these two factors interact, creating a combined effect that results in a much higher churn rate than either would cause individually. Analysts can use statistical methods like regression with interaction terms to disentangle these effects and quantify the impact of price shock, value exhaustion, and their powerful combination.