Customer churn rate is considered as a growth decelerator and has a direct impact on customer lifetime value and growth of the business. Measuring customer retention rate can help in increasing customer satisfaction score and building customer relationships, but what can be really done for improving the customer churn?
To get a better understanding on how to retain customers, it is important to understand churn on a basic level. Churn rate is the amount of customers or subscribers who cut ties with the company during a given period of time. A lower churn score equates to faster growth. It is typical to think churn as a fault in the system. By understanding the reasons behind users churn, companies can gain deeper insights on why users leave and what keeps them coming back.
In the below infographic, Gainsight.com has discussed about the best practices to monitor customer churn rate and how frequently this metrics should be followed for maintaining healthy customer rapport.