![]() It’s the inverse of your customer retention rate-and favored by those pesky glass-half-empty people. Monthly customer churn rate is a high-level metric that tells you what percent of your customers are churning every month. With these customer retention metrics, you can zoom in on every aspect of customer retention, so you’ve got the data you need to help your business grow. If you want to get a grasp on your customer retention-look no further. The 12 customer retention metrics you should be measuring ![]() These 12 other customer retention metrics will help you learn more about how well your product retains customers and halts churn. It might tell you that more people are churning, but it doesn’t get at the why behind it. For example, if your customer retention rate dips to 60% for two straight quarters, it might be time to see what’s going wrong and how you can rectify the problems.Īlthough useful, the customer retention rate is too high-level to get the complete picture. You can run this math over consecutive quarters to see how your customer retention efforts affect growth. In this example, of the 200 customers who started the quarter with you, 90% stayed, and 10% churned. ![]() 50 customers are new (starting during the quarter).Your company had 200 customers at the beginning of the quarter and 230 customers at the end of the quarter.It looks more complicated when it’s all laid out like that…but it’s all pretty basic and obvious when you see an example. Learning to calculate customer retention rate is pretty easy to do once you know the formula: customer retention rate = (number of customers at the end of a given time period – number of new customers)/number of customers at the beginning of that time period. Here are 12 essential metrics you can use to help you find the answers you need for better customer retention. Figuring this out will help you focus on the improvements that matter most: those impacting the long-term health of your business.īelow, we’ll look at how to find the source of that fire and put it out before things burn down. If your company’s churning users, you need to understand the customer retention metrics that tell you who is churning, when they’re churning, and why. But for SaaS companies looking to keep users around, it’s necessary to look beyond the simple formula of customers out versus customers to fix a churn problem. Like the loud screech of a blaring alarm, a high churn rate indicates something’s gone (or going) wrong.
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