customer-retention
Customer Retention
Overview
Retention is the foundation of sustainable growth. It costs 5-7x more to acquire a new customer than to keep an existing one. For solopreneurs, improving retention by even 5% can dramatically increase lifetime value and profitability. This playbook shows you how to measure, understand, and improve retention systematically.
Step 1: Measure Your Retention
You can't improve what you don't measure. Start by calculating your retention and churn rates.
Key metrics:
Churn Rate (monthly):
Churn Rate = (Customers Lost in Month / Customers at Start of Month) × 100
Example: Started month with 100 customers, lost 5 → 5% churn rate
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