Distinguishing voluntary vs. involuntary churn is very important to segment, as one is very preventable and can immediately be updated to increase retention - whereas the other is a lot harder to fix and more nuanced of an issue to address.
Involuntary churn occurs when a customer would like to buy from you again but is prevented from doing so through reasons beyond their control. This can happen for a number of reasons, including:
None of these reasons reflect dissatisfaction with your product or service.
In contrast, voluntary churn indicates that customers chose not to continue doing business with you for reasons such as:
These reasons involve a conscious decision by your customer not to buy from you again. Both involuntary and voluntary factors can cause a customer to churn.