Do you want to know a secret? You don’t really own your business, your customers do. I know it sounds odd when you provide the product or service, but without your customers, you have no business to own. So why aren’t more brands driving their focus towards retention? It’s not only about attracting new customers. You have to know how to keep them too. Naturally, 50% of customers will churn out every 5 years. That might not appear intimidating at first, but say it took you 5 years to gain 1000 customers. Natural fallout will only leave you with 500. In order to keep your momentum, you’ll need to double your efforts to replace those lost and to keep the fire going. 🔥
<p>Churn refers to the loss of customers who are subscribed to or use a service. Churn rate is an important component of growth because it is tied to the retention of users of a service. When more users churn, retention rates are lower. When churn rate is high, it is harder to grow a product or service because more new users are required to offset the users who churned from the service. Churn is particularly important in SaaS businesses and other businesses where users pay a recurring subscription fee. These businesses creaet profit from long customer retention spans and a high customer lifetime value. When churn is high, businesses can't capture the full expected lifetime value. These are the best articles on how to reduce churn and improve customer lifetime value. From how to reduce churn, how to generate negative churn, how to use customer success to lower churn rates and hacks to reduce churn, you'll find tactics to improve retention and growth for your business.</p>
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