The first step in collecting metrics about your users is all about acquisition, but we know building a customer relationship goes beyond this initial interaction. Establishing a recurring and profitable customer base needs to be carefully monitored, which is where customer retention analysis comes in.
When you’ve obtained this data and analyzed it, you’ll find it’s a powerful tool in the battle against churn. Customers can churn for a number of reasons, including frustration, failing to see value or not receiving the support they expect. Whatever the catalyst is, the outcome is the same - you’ve lost a valuable customer that it took resources to attract in the first place.
How customer churn manifests itself will depend on the type of business you’re operating. If you sell products or services, then churn is seen when customers stop buying from you. In a subscription model, it’s represented by users canceling their membership to your service.
No matter which industry you operate in, no organization can afford to let churn continue without tackling it. Despite this, it’s a trap many businesses fall into and positive acquisition numbers can often lead to processes further down the line being overlooked.