Lesson #7: Lower the Churn Rate by Investing Back in Your Business

Churn basically means the percentage of people who stop paying you during a given time period. If the churn rate is high, your offering is probably not good enough.

Reasons for high churn:

  • Weak customer service
  • A poorly upgraded product
  • A better offer from the competition
  • Payment challenges
  • People no longer interested in what you do or they simply found a better alternative
  • Weak relationship between the brand and the end customer

Churn rates between 20 and 30 percent are considered normal. But you should do whatever it takes to lower this.

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