CFOs, Churn and CLV: A Survival Story

We all know it’s more expensive to acquire new customers than to keep current clients. Experts agree it’ll cost anywhere from five to 15 times more, depending on the competitiveness of your industry. Improving customer retention rates by just 5% increases profits by 25% to 95%.

Plus, the more customers you lose, the harder marketing and sales must work to meet goals.

And churn doesn’t just impact revenue. A higher net retention rate hikes the valuation of your company compared with competitors with similar annual growth. Lots of investors use churn rates to evaluate the overall health of an organization and its chances of thriving. All else being equal, which would you invest in: Company A that loses 10% of its customers annually or Company B that sheds 25%?