Churn

Thomas Blain

Hello guys,

Currently I measured my customer churn rate and my revenew churn, and my number state that I have a vey high churn rate but a negative revenew churn which means I am able to balance my high customer churn with my existing customer retention. 

What should I target now, should I aim for upsells of current customers or for new customer retention?

Thanks!

Ed Powers

I suggest you ask some different questions, @Thomas Blain: 1. Why are customers leaving? 2. Why are customers staying and buying more? When you answer these, you'll have your answer. 

Thomas Blain

Thank you Ed!

Daniel Harry

Some of the things to consider as well are the Customer Acquisition Cost (CAC) and the Lifetime Value (LTV) of your clients. 

You may be replacing their churn now, but if the costs to acquire new customers outweigh what you're able to upsell....you have a leaky bucket problem.
(https://www.clientsuccess.com/blog/the-leaky-bucket-and-how-to-stop-it/)

Make sure you have a full understanding of how much your clients are worth in the long run (their LTV) and how much you are spending to acquire new customers. With high CAC's, I'd think you'd be best to focus in on the reasons you aren't retaining them.

Anita Toth

@Thomas Blain both Ed and Daniel have given you good answers.

I'd like to add that it's really concerning to hear you have a high churn rate. It means that something (or likely many things) is taking your happy customers and making them unhappy.

I would suggest hopping on a call with some of your churned customers to find out why they churned.

Even a 15 minute call can elicit some very useful info and determine the product and service issues (like onboarding or support) that are causing the majority of your churn.

If you want some assistance with creating the right questions to ask, let me know and we can hop on a call.