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Did you know that #ChurnRate is a crucial business metric for customer retention? Improve it by enhancing customer experience, content strategy & service. #Business #CustomerExperience

I don't mean to scare you even more, but churn has an even greater impact than you thought. Cost of acquisition: for most SaaS companies, the cost of acquiring that customer is realised when you keep them for some time. so you lose the money you spent acquiring that customer. Future profit: This is a no-brainer, but you lose any future profit you would have made over that customer in the next 1 or 2 years. Waste of time: All the time and effort you spent onboarding, resolving complaints and trying to satisfy a potential churn has now gone down the drain Reputation damage: Reputation is perhaps the most important thing for a company that seeks growth. An unsuccessful customer is 5x more likely to talk about your product to others...but not in a good way. Guess what metric this affects? Conversion rate: Yeah! you guessed right. The conversion rate of new customers coming in through your acquisition funnel has now been impacted by the bad reviews they've heard. Total addressable market (TAM) would shrink as a result too." Market Valuation: A company with a 95% churn rate could be valued at 3 times higher than a company with an 80% churn rate after 5 years even if they sign in the same ARR and have the same gross margin (this is, of course, a very basic example) what else would you add? #CustomerChurn #ChurnManagement #ChurnPrevention #ChurnRate #CustomerRetention #RetentionStrategies #CustomerLoyalty #CustomerSuccess #ReduceChurn #ChurnAnalysis #CustomerSatisfaction #RetentionMarketing #RetentionMetrics #CustomerExperience #CustomerFeedback #RetentionRate #CX #ChurnReduction #CustomerInsights #CustomerEngagement Customer Success Network Customer Service

Recurring VS Re-occurring Revenue - what’s the difference? From a revenue perspective, they look very similar. But there is one fundamental difference. Once a customer starts buying from you, there is one key difference between subscription-based (recurring) revenue and loyalty-based (re-occurring) revenue. Once set up, recurring revenue will continue until the customer actively cancels (opt-out). On the other hand, while it can seem just as steady, re-occurring revenue requires the customer to continuously repurchase (opt-in). I’m obviously a huge fan of recurring revenue (that’s kinda why I run a subscription business). Here’s one approach for turning your re-occurring revenue into recurring revenue. It doesn’t have to be rocket science. 1. Based on your order data, segment the customers that purchase regularly 2. Look at the order frequency - how often do they order? 3. Based on the frequency patterns, set up a few subscription offers 4. Reward customers that sign up for a subscription plan, for example by adding an extra product to their first order

Let's be honest for a second: customers aren't always right. Their feedback holds a lot of power, but only if you're critical about how you use it. Discover 5 crucial reasons you should be careful about customer feedback. Link in the comments below ⤵️ #CustomerFeedback #Marketingstrategy #GTMStrategy

When customers cite budget constraints as the reason for ending a relationship, it often masks the real issue: a lack of perceived value. Customer churn is most significantly influenced by whether they've achieved measurable business results. To prevent churn, invest in robust customer onboarding to solidify the relationship and focus on helping customers achieve their desired business outcomes, tying activities to measurable objectives. Demonstrating tangible business value is the key to retaining customers and justifying their continued investment. Forrester | Shari Srebnick | #customerretention #businessvalue #churnprevention #customerrelationship #roi #customeronboarding #customersuccess #churnrate #valuecreation #measurableresults #customerexperience #businessoutcomes #customersatisfaction #customerengagement #budgetallocation #valuedemonstration #churnmanagement #customerfeedback #businessmetrics #b2bmarketing #Activate_ms

🌟 Exciting News! 🚀 I've co-published with Chirag Deshpande "The Ultimate Guide to Churn for Subscription Businesses" on Further's blog. This comprehensive guide dives deep into understanding and reducing churn – a critical challenge for any subscription-based model. 🔍 Inside, you'll find actionable strategies and real-world insights on turning churn into an opportunity for growth and customer engagement. 🔗 Check out the article here and let's redefine how we approach customer retention together! #SubscriptionBusiness #CustomerRetention #BusinessGrowth #ChurnManagement

Building up to our content series on the importance of 'Customer Retention in High-Tech' - Grace Koplow and I published an article on 'The Ultimate Guide to Churn for Subscription Businesses.' This critical component is a key step in understanding and mitigating the retention challenges within the High-Tech sector. Check out the article. #Further #customerretention #hightech #revenuegrowth #customerobsessed

🤔 Do you know these metrics can help you understand your customers well? Understanding your customers is crucial for building a product that everyone will love 🔥 Here're 6 key metrics that can help you better understand your customers: 1️⃣ Net Promoter Score (NPS): In this, you ask your customers to rate, on a scale of 0 to 10, how likely they are to recommend you to someone. Lower NPS implies users are not satisfied with your product as they don't wish to recommend you to others. 2️⃣ Retention Rate: Lower retention rate implies customers are not satisfied with your product and don't purchase it more than once. If this is the case with you, take feedback from those customers and improve your product accordingly. 3️⃣ Churn Rate: Higher churn rate means most of your customers are not satisfied and chooses to stop purchasing from you. Although you can't avoid churn but can reduce it by taking feedback from users and providing them with what they want. 4️⃣ Customer Acquisition Cost (CAC): It measures the cost of acquiring customers that tells you if all your marketing, sales, and other efforts of acquiring customers are generating good ROI. If your CAC is high, you need to pay attention to it. 5️⃣ Lifetime Value (LTV): LTV tells the value of each customer, which you can use to make economic decisions such as determining marketing budgets and resources as well as forecasting profitability. 6️⃣ Monthly Recurring Revenue (MRR) MRR gives you a clear and predictable indication of your company's financial health. You can use it to forecast your revenue better, understand your customer's buying behaviour, and make informed decisions about your product roadmap. 🔥 If you also want to build great products, listening to user feedback and keeping an eye on these metrics is essential. #productmanagement

What are some of the key metrics to choose from in a startup to measure performance? Monthly Recurring Revenue: MRR signifies the revenue your company generates monthly from recurring subscriptions, crucial for tracking your company's revenue growth. Annual Recurring Revenue: ARR is the annualized version of MRR, estimating your company's total revenue over a year based on current MRR, providing a yearly perspective. Average Revenue Per Account: ARPA is the average revenue generated per customer, aiding in assessing customer value and strategies for revenue enhancement. Gross Profit: Gross profit is your company's revenue minus the cost of goods sold, vital for understanding business profitability. Customer Lifetime Value: LTV gauges the total revenue expected from a customer throughout their lifetime, crucial for long-term customer value assessment and retention strategies. Deferred Revenue: Deferred revenue is income received but not yet recognized, aiding in cash flow management and revenue recognition policy adjustments. Billings: Billings encompass the total invoiced revenue during a specific period, crucial for cash flow management and refining invoicing processes. Customer Acquisition Cost: CAC indicates the cost to acquire a single customer, vital for understanding sales and marketing expenses and enhancing profitability. Concentration Risk: Concentration risk evaluates revenue diversification, & reducing dependency on a few customers. Daily Active Users: DAU counts unique users daily, essential for monitoring user engagement & product/service improvement. Number of Logins: Number of logins reflects user engagement, guiding product/service enhancements for improved user experience. Activation Rate: Activation rate represents the percentage of successfully onboarded users, pivotal for understanding user adoption. Month over Month Growth Rate: MoM Growth Rate tracks short-term growth trends, revealing rapid or slow growth areas. Compounded Monthly Growth Rate: CMGR monitors average monthly growth trends, highlighting consistent or erratic growth patterns over time. Monthly Churn Rate: Monthly Churn Rate measures the percentage of customers leaving, essential for retention strategies and customer loss assessment. Retention: Retention percentage indicates long-term customer loyalty. Gross Churn Rate: Gross Churn Rate calculates the percentage of customers lost over a specific time, vital for understanding overall customer loss. Net Churn: Net Churn reveals the impact of customer churn on growth by considering new customer acquisition, offering a comprehensive view of customer loss. Burn Rate: Burn Rate signifies the speed of cash reserve depletion, crucial for cash flow management and expense reduction strategies. Gross Merchandise Value: GMV calculates the total value of goods sold through a platform, irrespective of revenue, indicating the volume of transactions. #Shahriarsuncommonsense

There are so many reasons why customers churn. How can you understand why they left your company? Was it the product, value, expectations, service, or something else entirely? 🤔 You can waste your time guessing or just ask them. Of course, it may be uncomfortable or even scary (because what if they left because of you) but this is a small price to pay since the benefits are obvious here: ☝ You can identify the weaknesses. Churned customers can provide insights that current customers might not voice. ☝ You can improve retention and reduce future churn. Understanding the reasons behind churn allows you to address issues and improve retention strategies. ☝ The Product team can learn a lot. Insights from churned customers can guide product development, making your offerings more competitive. ☝ You can improve your customer experience. By learning from past mistakes, you can enhance the overall customer experience, making your offerings more appealing. As you can see, this is a powerful tool for continuous improvement and long-term success. So the question here is – are you ready to sacrifice your comfort for these insights?