There is a lot of talk about how to get new customers and retain them , but one aspect that is just as important is often forgotten: the churn rate (sometimes simply called “churn”). It is about looking at the other side of the coin: not losing the customers that we have worked so hard to get. Let’s see how we can do it.
The churn rate or customer cancellation rate
Number of subscribers lost over a period of time / Number of subscribers we had at the beginning of the period.
What is churn rate and how is it calculat?
The churn rate is the percentage of customers who unsubscribe from a subscription list or any other type of database. In short, these are the customers we have lost and are no longer in our conversion funnel.
When calculating it
It is very important to take into account the time factor. We can rely on this simple formula:
For example, if at the beginning of the month you had 100 subscribers and at the end you lost 3 of them, your monthly churn rate would be 3%.
It is very important to take into account the period to which the data refers and always compare periods that are equal to each other (customer cancellation rate per month, per quarter, per year…).
It is difficult to give reference percentages for the churn rate
As it depends greatly on the sector and the particular circumstances of each brand. As a general guideline, more than 15% is considered alarming.
Calculating your churn rate on a regular
Basis is very useful for measuring the health of Middle East Mobile Number List marketing : just like a fever, a high churn rate is a symptom that warns us that there is a problem that needs to be solved. Regularly monitoring this metric and trying to improve it will help us better define our products and services, work on our offer and optimize the relationship with customers in the long term. It’s all advantages!
How to improve customer churn rate?
Find out why customers are dropping out.To improve, you first need to know where the problem is. Put yourself in your customers’ shoes, go through your entire website and subscription process and try to identify the “pain points” that cause them to drop out. Or better yet, ask them! Use tools Specific Database By Industry Database surveys to get the keys to what you can improve.
Identify weaknesses
Users join your databases because you offer something that interests them.
When they unsubscribe
It is because they perceive that the offer is no longer of the same quality, or because they have found something better elsewhere. Honestly analyze your added value and compare it with the competition to find the weaknesses behind your churn rate.
