Why it is a villain and how to combat it to retain customers
Of course, businesses often lose customers. After all, the market offers other varied. Therefore, options for consumers. But winning over new customers costs more than retaining the ones you have. And this is a mistake that many companies make: they always go for new. Therefore, customers and forget to build a relationship with old ones. Customers who stay longer in your base are more likely to purchase other services or products.
What is Churn Rate
Reasons for dropouts, you will be able to develop a more. Therefore, efficient action plan executive email list and correct the problems found. Types of churn Yes, there are different ways to calculate churn. But don’t despair: both accounts are simple and adapt to the. Therefore, strategy of each business. The first type is Gross Churn , which represents the total number of users or recurring revenue that may be lost annually or monthly, or over a given period of time, as in the example above.
The importance of taking care of this rate
The second type is net churn , which takes into account the revenue lost from canceled. Therefore, plans. It is calculated like this: total sum of CY Lists the monthly value of the person who canceled / total monthly income. What is the ideal rate? As we said before, the ideal rate is close. Therefore, to zero, but we know that cancellations are inevitable.
