A naukri.com initiative
Dev
2M
294
Image Credit: Dev
How to Calculate and Actually Reduce Your Churn Rate
- Churn rate can silently hinder growth in startups, leading to loss of users without obvious reasons.
- Understanding and calculating churn rate accurately is crucial, as it affects long-term customer retention.
- Churn rate is the percentage of users/customers who stop using a product over a specified period.
- Churn compounds, making even seemingly low monthly rates result in significant customer loss annually.
- Revenue churn, reflecting lost recurring revenue, is as vital as customer churn for a complete understanding.
- Common mistakes in calculating churn include not considering paid trials and using inconsistent time frames.
- A 'good' churn rate varies by business type and typically falls within 1-8%, with factors like pricing and onboarding influencing it.
- Users churn not just due to bugs or missing features but often because of unperceived value, lack of engagement, or feeling unheard.
- Reducing churn involves improving onboarding, collecting and acting on feedback, maintaining transparency, and monitoring user engagement.
- Tools like the churn calculator can help businesses understand their churn metrics and make informed decisions to enhance customer retention.
Read Full Article
17 Likes
For uninterrupted reading, download the app