Just above we talked about revenue Churn. To make your calculation, you need to take the average ticket of each customer who canceled. The formula is: Revenue Churn = total sum of the monthly amount paid by customers who canceled. It is also a good practice to measure this number as a percentage, to know exactly how much of your monthly revenue was affected by cancellations. The account would look like this: Revenue churn in % = total sum of the monthly value of those who canceled / total revenue from the last month churn rate Stay tuned: this is an important analysis even for refining the prospecting work, better balancing the investments that should be directed to each type of strategy.

In other words you depend

In other words, you depend on Churn Rate assessment british student data to develop customer retention, post-sales and even pre-sales tactics. Is there an ideal churn rate? In an ideal world, every manager’s “consumer dream” is to zero the cancellation rate. Nobody likes to see customers leaving the company. In addition to the direct impact on revenue, there is the chance that the former customer will speak badly about the company, which would weaken the brand and damage its reputation in the market.

But many variables are at

But many variables are at play and it is practically impossible to keep the base % stable. Therefore, the general rule is: ensure that your Churn Rate is your website and single product in it always as low as possible. As the customer cancellation rate can be associated with several factors, it is difficult to determine a fixed value for the rate. In some sectors, such as SaaS platforms, it is possible to work with rates of around % to % per year.

Naturally services that require high-ticket

Naturally, services that require high-ticket, long-term cz leads contracts tend to have lower fees. Hiring (as well as abandonment) usually takes time and involves several people, so turnover is low. Is it possible to achieve negative Churn? Yes, it is possible. But what is negative churn? This is when a business manages to increase sales to its existing customer base, and revenue exceeds the value lost through cancellations. Let’s go back to the first example, which we cited when talking about revenue churn.

The company lost customers all

The company lost customers, all subscribers to the R$ plan, The total loss is R$, But in the same month, the company managed to get customers to upgrade the R$ plan, to the most expensive of all, which costs R$, With these sales to those who were already in the customer base, revenue increased by R$, — a value greater than the R$, lost through cancellations. This would represent a negative Churn. What is the lesson here? Increasing the average ticket is a great way to reduce revenue Churn.