Whoever has a loyal customer has Online Sales a treasure… and whoever has a high customer cancellation rate has a problem.
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 call “churn”). It is about looking at the other side of the coin: not losing the customers that we have work so hard to get. Let’s see how we can do it.
The churn rate or customer cancellation rate
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.
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 consider alarming.
Calculating your churn rate
on a regular basis is very useful for measuring the health of your marketing : just like a fever, a high churn rate is a symptom that warns us that there is a problem that nes to be solv. 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!
Segment, segment, segment. Segmentation is a vital step in understanding your customers’ tastes and interests and finding the right offer to retain them. If you try to market to everyone, you’ll likely end up with a sky-high churn rate. Divide and conquer!
Improve your offers. When a potential security in messaging applications customer subscribes to a list, it’s because they expect a certain quality from the brand. They trust your products and services, and they expect you to always offer them the best. So if your campaigns aren’t up to par, they’re likely to cmo email list drop out. Here, quantity doesn’t matter as much as quality: it’s better to contact them infrequently, but your emails should always be wo.