Measure what Matters (Part II)

Seed Round Metrics

6.Churn

• In any business that relies on a subscription-based income model, addressing customer attrition is crucial. Failing to address this issue promptly will result in working tirelessly just to maintain the status quo.

• The churn rate is a measure that quantifies the proportion of customers who discontinue using a product during a specific timeframe, in comparison to the overall number of active customers.

• The ultimate strategy for overcoming customer attrition is enhancing customer retention. It is essential to establish a robust retention system that ensures your customers remain engaged with and committed to your product.

  • Starting with 100 clients, if 5% leave monthly, your customer base will be reduced by 50% within one year.