Customer churn is one of the most important metrics that every business looking to grow should measure. After all, it accurately quantifies your customer retention.
Customer churn is the percentage of customers who stopped using your company's product or service during a specific period.
Churn rate is calculated by dividing the number of customers lost during a given period by the number of existing customers at the beginning of that period.
Learn more: How to reduce churn in your company now!
The lower the churn rates, the higher the customer retention rate.
There are a number of reasons why a customer stops doing business with your company – they range from personal to avoidable.
However, the most common reason customers leave is that latvia mobile database they don’t believe the company really cares about them.
So much so that 9 out of 10 customers may abandon your company due to bad experiences.
The good news here is that customer churn is within your control.
All your company needs to do is figure out how to improve its customer service and adopt project management practices to make your customers feel valued.
For this to work, you need to review your business mindset. So, analyze how much customer retention is underestimated when compared to customer acquisition.
Read also: How to reduce customer acquisition costs in your company
Customer acquisition generates the initial sale, but retention helps you sell more – which brings in additional recurring revenue.
So the main reasons why customer retention should be the foundation of your business growth include:
Accessibility
Money invested in marketing means money spent to attract new customers to your company.
Read also: Google Ads or Meta Ads – which sells more?
However, marketing changes when your business adds customer retention to the mix. By focusing on retention, you can gain more cost-effectiveness from your integrated digital marketing strategies .