Your ability to retain customers from month to month— minimizing your churn rate—is the lifeblood of any successful subscription-based business.
Churn rate can mean different things to different people, but at its core is measuring the percentage of customers who leave (cancel or stop subscribing) over a certain period of time.
The financial effects of a high churn rate are disastrous. First you have to consider the money it takes to replace the customers who leave. If you have a high churn rate, the revenue you’re pulling in from the churners is probably significantly less than the cost it took to acquire them.
So you’re forced to spend more and more money acquiring new customers to replace the old ones if you want any chance to grow. As a consequence the higher the churn rate, the lower the average lifetime value of your customers
1. Find Out Why You’re Losing Customers
2. Keep Current Customers Engaged
3. Use Drip Email Campaigns
4. Downsell Customers Basic Offer
5. Figure Out What Customers Can’t Live Without and Introduce it Early