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