Focus on retention

It's easy to get caught up in the excitement of acquiring new customers, but it's just as important to focus on retaining the customers you already have.

In a recurring revenue business, the only thing that will kill your business is if more customers are leaving than are signing up.

Why Retention is So Important

• It's cheaper to keep a customer than to acquire a new one: It can cost five times more to attract a new customer than it does to retain an existing one.
• Happy customers are your best marketing channel: Happy customers are more likely to refer their friends and colleagues to your business.
• Churn can kill your business: If you're losing customers as fast as you're acquiring them, you're not going to be able to grow.

How to Improve Retention

• Deliver constant value: Make sure you're constantly providing value to your customers. This could be through new features, great content, or excellent customer service.
• Build relationships with your customers: Get to know your customers and what they need. The more you can personalize their experience, the more likely they are to stick around.
• Learn from your churning customers: When a customer leaves, don't just let them go. Reach out to them and ask them why they're leaving. The feedback you get from churning customers can be priceless.

A simple and effective way to get feedback from churning customers is to send them a short, personal email with the subject line "Did we do something wrong?". This is often more effective than a long, impersonal survey.

By focusing on retention, you can build a more sustainable and profitable business.