Churn Rate Reduction
Your customer churn rate has a direct impact on your customer lifetime value and the ability to grow your business. If your customer churn rate is higher than 10%, then even if you bring on 10% new business, you’re not going to be able to grow. In fact, you’ll be burning money on marketing and customer acquisition costs so the reality is you’ll be killing your bottom line.
Calculating customer churn is essential for any service based business that has an ongoing relationship with their customers, that is of monetary value. So if you have ongoing contracts, you need to make sure your customers are happy with your service and keep paying you. Otherwise you’ll be losing business, losing revenue and on the slide to surrendering.