Monday, May 19, 2014

A High Churn Can Cause Your Business to Crash and Burn

Posted By: George Deeb - 5/19/2014

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Customer churn -- the percentage of those that stop shopping with you in a given period -- is one of the most important metrics a startup can measure, and reduce, over time.

Churn is typically calculated for businesses with recurring monthly revenue streams. The higher your churn, the poorer job you are doing at retaining your customers. Worse yet, instead of getting lower-cost marketing efficiencies from retention marketing to current customers, you are back fishing again in expensive pools for new customer acquisition.

Read the rest of this post in Entrepreneur, which I guest authored this week.

For future posts, please follow me on Twitter at:  @georgedeeb.

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