How many customers do you lose?
One of our sales KPI examples is especially important for businesses with monthly recurring revenue such as SaaS businesses. The customer churn rate expresses the number of customers who stopped using your company’s products or services in a defined timeframe and gives you a realistic overview of your customer retention strategies and what kind of trends you cope with. To calculate the exact churn rate, divide the total number of customers you had at the beginning of the month with the total number of customers lost. You can also automate these calculations by using professional software that can trigger alarms if any sales anomalies occur. Your goal should be to keep the churn rate as low as possible.
Performance Indicators
The higher the churn rate, the more customers and revenue you will lose. It should be on top of your priorities when it comes to developing retention strategies.
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