It’s no secret that customer retention is more vital to subscription-based businesses than just about any growth metric. If your customer turnover is high, your acquisition rate has to outpace the churn just to break even. You’re on a treadmill, not a track. And what’s worse, the more you grow, the harder it is to outpace a high churn rate. As your acquisition grows, so does the number of people that churn. That treadmill just moves faster and faster. This is why getting a handle on customer churn as you scale is vital to any sort of stable, meaningful growth. Here are 7 proven methods for preventing customer turnover before it’s too late.
It’s no secret that customer retention is more vital to subscription-based businesses than just about any growth metric. If your customer turnover is high, your acquisition rate has to outpace the churn just to break even. You’re on a treadmill, not a track. And what’s worse, the more you grow, the harder it is to outpace a high churn rate. As your acquisition grows, so does the number of people that churn. That treadmill just moves faster and faster. This is why getting a handle on customer churn as you scale is vital to any sort of stable, meaningful growth. Here are 7 proven methods for preventing customer turnover before it’s too late.
<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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