It costs money to bring new customers to your service. You need to recoup that investment before you start seeing revenue from a new customer. The churn rate helps determine if you are meeting that goal. A low churn rate might indicate that you are losing customers before getting back the initial investment. So, regardless of your monthly revenue, you are losing money. An increase in customers should mean more revenue, not the same amount.
For instance, if at the beginning of the month, you have 100 subscribers. If by the end of it, you brazil phone number data have 90, you lost ten customers, giving you a churn rate of 10%. If you signed up ten new customers during the month, your revenue would be the same, but in fact, you lost the initial investment you made to bring in new business. 4. Customer lifetime value Customer lifetime value (CLV) measures the total net profit a business can expect from each customer.
with a brand over their lifetime. For example, theoretically, if someone buys a Ford and likes it, they should buy at least one more. This metric goes beyond just marketing. CLV can be an indicator of product success. If your CLV is rising, you might consider expanding your product line. If that number drops, you might need to consider another product or market type.