Understanding customer churn

In business, the number of paying customers that fail to become repeat customers for a given product or service is known as customer churn, also known as customer attrition. Churn in this sense refers to a measurable rate of change that happens over a predetermined period of time.

Analyzing the causes of churn, engaging with customers, educating them, knowing who is at risk, identifying your most valuable customers, offering incentives, selecting the correct audience to target, and providing better service are a few strategies to reduce customer turnover.

It’s crucial to lower churn because it increases Customer Acquisition Cost (CAC) and lowers revenue. In actuality, maintaining and improving current client relationships is much less expensive than gaining new consumers. The more clients you lose, the more money you’ll need to spend on acquiring new ones in order to make up for the lost revenue. You can use the following formula to...