Here are some simple, effective tips to combat your churn rate
Have an awesome product or service
Reducing churn and maximizing customer happiness all starts with having a product or service that people love.
Detailed help documentation
Your customers shouldn’t have to contact you every single time they need to know something; your help docs should do that job.
Engage your customers
Call them. Email them. Build a relationship with them. The quality of this relationship will determine if they’re going to stick with you.
Implement dunning management
Credit card failures are a major cause of customer churn, but they can be easily mitigated with dunning management.
Up-sell your existing customer base
Up-selling is a great way to beef up your recurring revenue and counter the effects of churn. Offer customers add-ons, extensions or plans with more features.
Scale your customer acquisition
Acquisition need not always cost money. Creative growth hacks and new channels can help you accelerate acquisition to compensate for customer churn.
An end-to-end solution to help you manage churn and increase customer base
You can analyze how your business is performing and calculate the projected revenue of your business. This will help you make informed business decisions. What's more, you can do this for free, and get the report in seconds.
It's simple: just plug in your MRR, your revenue growth, and your revenue churn into the respective fields. Set the time period for which you want to forecast your revenue and sit back as the results will be displayed automatically.
MRR (Monthly Recurring Revenue) is the predictable revenue a business can expect to receive every month. It is calculated by taking into account only the recurring charges from a subscription.
MRR for a subscription business can be calculated by summing up the recurring revenue from each customer for a month. Please note that one-time charges or setup fees should not be included in this calculation.
For example: If you have customer A with a subscription plan at $20/month and another customer B at $60/month. Then your MRR would be: MRR = (20+60) = $80
Let's take an example with a combination of monthly and yearly plans.
For example: If you have a customer A with a plan at $2500/month and a customer B on $36000/year. Then your MRR would be: MRR = [2500 + (36000/12)] = $2800
Revenue growth is the average MRR added to your subscription business in a month.
Revenue Churn is a the revenue lost in a period of time. It can be calculated using the following formula: Revenue churn = {Revenue lost in a period / Revenue at the beginning of the period} * 100
You should focus on MRR as it is an accurate form of predicting the subscription revenue coming into your business from customers. It helps you plan and execute business decisions better.
Revenue churn tells you the amount of recurring revenue you are losing over a period. It denotes the revenue lost due to leaving customers. So, a lesser revenue churn rate means your customers are retaining more customers and thereby your revenue is healthy.
Yes, you can. Just click the + Compare button, available next to the Revenue Churn field and key in the value you would like to compare with. By comparing different revenue churn rates, you can identify the change you need to make in order to decrease your revenue churn.
It is advisable to adhere to the following suggestions to combat churn:
Interact with customers and get feedback about your product or service.
Analyze customer usage and payment trends.
Make customer support your number 1 priority.
Know when a customer is at risk of leaving.
Follow up with leaving customers and try to win them back.
Offer discounts and help customers whenever possible.
Manage the entire customer subscription life cycle with Zoho Billing.
How to use the tool?
