Churn rate means the number of customers who leave your business; it is calculated as:
Churn Rate% = Number of customers lost /Total no. of customers x 100
3-5% is the acceptable churn rate for Saas-based companies, but you need to think if the percentage increases. The reason for the higher churn rate could be anything like:
1. Price factor
2. User Experience
3. Customers experience
Below are the recommended ways to reduce customer churn rate:
1. Identify the cause of customers attrition
2. Increasing Quality of services and products is directly proportional to customer retention
3. Creating a roadmap of product description will sales
4. Customer experience is an important factor to improve while improving your customer churn rate.
5. Loyalty cannot be bought and has to be earned; identify the loyal customers to stay longer with you
6. Have a performance measurement mechanism to know how well your strategies work.
7. Follow Consumer surplus: provide more of what customers expect
8. Flaunt your USP in front of the customers and get a competitive advantage
Churns are an unavoidable part of any business; however, having well-planned strategies followed by a backup plan can minimize the churning rate of any business.