Not All Red Flags Are Obvious: The Subtle Signs of Customer Risk
By Kristen Hayer
There are obvious signs of customer risk we talk about all the time in the field of customer success. Things like customers who “go dark,” declining product usage, or negative survey results are almost always signs of risk. Most CSMs actively pay attention to these signs, and most health scores incorporate all or at least some of these factors.
However, some indicators are less obvious. In times of uncertainty, it is important to pay attention to these subtler signs as well. Knowing what to look for can help you get ahead of risk, address it proactively, and do a better job of preventing churn. Here are five less common red flags you should add to your list, along with strategies for addressing them.
1. Shifts in Industry or Market Conditions
If your customer’s industry is experiencing major changes or a downturn in market conditions, this can indicate that the company may be at risk. Look for signs like layoffs, regulatory changes, or a rise in acquisitions in their field. You can find this information by using AI to research the industry, reviewing industry publications, or even tracking job changes on LinkedIn.
How to Tackle It:
Proactively check in with your champions to understand their internal climate and perspective on the changes in their industry.
Offer insights on how your offerings can help them navigate uncertainty.
2. Decreased Internal Advocacy for Your Product
If the person who is usually your biggest fan isn’t talking about your product to their colleagues as much as they used to, this could mean they aren’t getting as much value from your solution. Look for signs like low attendance at business reviews, less willingness to discuss the future of your partnership, fewer team members being sent to training, or fewer referrals to other teams.
How to Tackle It:
Re-engage your champion with exclusive insights, beta features, or executive check-ins—things that make them feel valued and provide unique benefits.
Expand relationships beyond a single champion to increase retention resilience.
3. An Increase in ‘Workarounds’ or Shadow IT
When customers find unofficial ways to use your product or bypass it altogether, it can be a major risk factor. You might notice that your support team is seeing an uptick in non-standard integration requests or workarounds. Customers might also start relying on other tools to fill in “gaps” that your product already covers or create processes that bypass your offering.
How to Tackle It:
Investigate why they’re working around your product instead of within it. It might just be a lack of product knowledge.
Offer tailored training or workflow consultations to optimize their setup.
4. A Drop in Collaboration Across Teams Using Your Product
If you normally work with multiple teams across your customer’s business, this is an important risk factor to watch for. If teams that once collaborated start working more independently in how they use your solution, it can indicate that one group isn’t seeing as much value as they used to. A decline in cross-functional workflows or a drop in usage across a specific department could signal this kind of risk.
How to Tackle It:
Reinforce the value of cross-functional collaboration through training or success stories.
Identify barriers to interdepartmental teamwork and help remove them. Getting an outsider’s perspective can sometimes help resolve cross-functional challenges.
5. Changes in the Customer’s Strategic Priorities
Sometimes a company’s strategic priorities shift due to changes in their competitive environment, market conditions, financial situation, or other external factors. If your customer starts discussing new priorities in investor calls or press releases, this could be a red flag. Pay attention to any pauses or delays in planned projects, as these may indicate a shift in focus away from your solution.
How to Tackle It:
If possible, reposition your value proposition to align with their new strategic goals. Draw the connection between their evolving priorities and your offering.
Identify secondary use cases that still drive ROI under their new direction. Be sure to set revised goals with your customer so everyone is aligned on the new approach to value.
Final Thoughts
By paying attention to both the classic signs of churn risk and these more subtle indicators, you’ll have the best possible chance of preventing customer churn during times of uncertainty. These signs can also turn into opportunities to partner with your customers in ways that truly matter to their business, strengthening relationships and driving long-term growth.
The Success League is a customer success consulting firm that offers CSM Certification Training (either with live, expert instructors or as self-led, digital version), including a classes on Managing Customer Health & Risk and Leading with Questions. For more on these and our other offerings, visit TheSuccessLeague.io
Kristen Hayer - Kristen founded The Success League in 2015 and currently serves as the company's CEO. Over the past 25 years Kristen has been a success, sales, and marketing executive, primarily working with scaling tech companies, and leading several award-winning customer success teams. She has written over 100 articles on customer success, and is the host of 3 podcasts about the field. Kristen has served as a judge for the Customer Success Excellence awards, and is on the board of several early-stage tech companies. She received her MBA from the University of Washington in Seattle, and now lives in San Francisco.
