An increase in customer churn is a sign that people aren’t happy with your brand, usually because of a bad experience. According to Zendesk, even a single bad experience would push 52% of customers uk business email list to switch to another brand.
Sometimes, you may see higher churn when a new competitor enters the market. Either way, it indicates a need to review your customer engagement strategies. You’ll also want to stay on top of the latest customer service trends to remain competitive.
Churn rate = (Number of customers lost/Original number of customers) x 100
You can also use the WebEngage Churn Rate Calculator to calculate customer churn.
Churn Rate Calculator showing three fields to enter the number of customers at the start, acquired, and at the end of the period and a churn rate of 20.00%
Source: WebEngage
5. Customer retention rate
A closely related metric to churn rate is customer retention rate. This metric tells you how many customers stay with your brand over a given period. In other words, it helps you measure your customer loyalty.
It’s an excellent indicator of how well your brand is engaging your customers. So it gives you an idea of whether you’re delivering the kind of experiences that make them want to stay.
The formula for measuring churn rate is as follows:
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