Did you ever stop and consider that it's always cheaper tothan to acquire new ones? It's darnand companies can invest a lot of their revenue on marketing and sales efforts without realizing how impactful similar investments can be in retaining the customers you already have.
That's why it's critical for your business to keep an eye on whether you've sprung any leaks in your revenue bucket, losing some of those hard-won clients, and take action to fix them.
The best companies have customer retention rates of over 90 percent--which means they only lose less than 10 percent of their customers on an annual basis. When it comes to retention, any percentage that starts with a 9 is a good number. If you are good, you keep all your clients and grow them for retention rates over 100 percent. Businesses with retention rates of 50 to 60 percent, on the other hand, have sprung serious leaks in their revenue buckets. I worked with the leader of one software organization, for example, who found that his retention rate was just 68 percent. The company's customers just didn't stay around for long--which is a serious challenge in trying to grow a business.
Our sales and technology experts can answer all your questions and help you explore the easiest use case for a no-code proof of concept test.
Churn
Unlike industries such as travel agencies and CDs/DVDs, news is adapting to the new world. Moreover, people are growing weary of low-quality news, even if it's free. Almost every newspaper we collaborate with has adopted a paywall model (free articles, followed by a subscription), and local news represents an incredible, yet underutilized opportunity.
March 26, 2024
Churn
We've all been there. You hit that "cancel subscription" button with a sigh of relief, determined to declutter your digital life and save some cash.
March 6, 2024
Acquisition
Choosing the right subscription pricing model is vital as the pricing options have some major differences. Let's explore five common types of subscription pricing models and their unique characteristics.
March 5, 2024