retention
Churn Prevention & Retention
A 5% reduction in churn can increase profitability by 25-95%. This skill helps you understand why customers leave, build systems to keep them, and win back the ones you've lost.
Core Principles
- Acquisition gets attention. Retention builds businesses. A 5% reduction in churn can increase profitability by 25-95%.
- Churn is a symptom, not the disease. Every cancellation has a root cause you can address.
- The best time to prevent churn is day 1. The second best time is today.
- Retention is not one thing — it's onboarding + value delivery + relationship + habit formation.
- For a bootstrapped founder, saving one customer is often easier and cheaper than acquiring a new one.
Understanding Your Churn
Calculate Your Churn Rate
Monthly Churn Rate = (Customers lost this month / Customers at start of month) × 100
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