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Churn rate or churn rate is the percentage of customers who stop using your product or service within a set period of time. This can be yearly, quarterly, or monthly, but your churn rate can give you a clear idea of how many users are coming into your business and how many are leaving. When properly analyzed, all things being equal, an organization's churn rate is the key metric that provides the clearest understanding of an organization's business longevity.
If more people leave a business than join, or if not enough people join compared to B2B Email List the percentage of people who leave, it's only a matter of time before the business dies. Avoidable customer churn is said to cost U.S. businesses up to $136 billion annually. In a study analyzing the growth of technology companies, McKinsey found that if a SaaS company grows less than 20% annually, there's a 92% chance it will cease to exist in just a few years.
Zoho also found that if you can reduce your customer churn rate from 2.5% to 1%, your number of customers will double in eight years. Reduce Churn Chart So how do you reduce churn and retain more customers? Here are six research-backed strategies you can start using today. 1. Overdeliver during the first customer interaction When it comes to customer churn, first impressions matter. Most customers will base their opinion of your brand on their first interaction with you, and once an impression is formed, it's difficult to change their mind.
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