Post by account_disabled on Nov 22, 2023 4:43:41 GMT -5
The Churn Rate is the percentage of customers who stop using a company's products or services during a specific period.
A high ratio can have a significant impact on a company's revenue and growth opportunities.
Accurately understanding the factors that lead customers to churn allows you to identify the actions necessary to address the situation.
The reduced churn rate represents a higher degree of customer loyalty and long-term revenue stability for the company.
The formula to calculate the Abandonment Rate is:
formulas-revops-client-jul23-Abandonment
5. Renewal rate
Renewal Rate represents a sales metric that measures Asia Mobile Number List the percentage of customers who choose to purchase again at the end of a specific time period.
The analysis of the Renewal Rate helps to evaluate customer satisfaction, their degree of loyalty and the value they give to the products or services offered
Likewise, you can discover the factors that motivate customers to remain loyal and address any issues that may be affecting their decision to renew or repurchase services.
Increasing the renewal rate allows you to consolidate the income flow and reduce the effort required to attract new customers.
The formula to calculate the Renewal Rate is:
formulas-revops-client-jul23-Renewal
6. Customer Lifecycle Value
Customer Lifecycle Value (CLTV) represents the financial amount that the company obtains from a customer during the time in which they use its product .
CLTV covers the entire landscape, from the initial purchase cost to follow-up purchases, upsells and cross-transactions.
This way, you can gain a better understanding of customer profitability over time.
It also helps determine the most appropriate areas to invest in customer acquisition, marketing and retention strategies.