It’s where your profits live.
Even a 1% increase in churn can unravel your business.
↳ (see chart below)
The bigger the churn rate, the faster your customers disappear.
Why retention matters:
1. Existing customers spend more.
2. Loyal customers lower your CAC.
3. A 5% boost in retention lifts profits > 25%
The cycle is simple:
– Engagement → renewals
– Renewals → retention
– Retention → loyalty
– Loyalty → recurring revenue
– Recurring revenue → growth
– Growth → profits.
Yes, acquisition matters.
But, businesses win on retention.
Remember, it costs 5x more to acquire a new customer than to keep one.
Get retention right.
Retention is Revenue
Churn is now a boardroom problem. If you’re in the
