Customer Churn is the reason why you are losing money every day
Here's what you can do about it.
Why am I losing money?
You wouldn't dream of starting a race with weights tied around your ankles.
Yet many businesses take this approach to growth, by focusing on acquiring new customers rather than keeping existing customers.
Consider the ways in which keeping a customer costs less than acquiring a new one:
- The probability of selling to an existing customer is higher than selling to a new customer.
- A happy existing customer is more likely to refer their friends and family to your business.
- Finding, persuading, and converting new customers can be five times more expensive than keeping existing customers.
Companies that focus on acquisition at the expense of retention can continue to grow. But if you lose even 10% of your customers per year, 20% growth in new customers starts to look a whole lot less appealing.
If your business could unburden itself from the weight of losing customers, what would that mean for your growth?
What is Customer Churn?
Customer churn is the proportion of customers who leave your business during a given time period, normally the course of a year.
