Now that you know the benefits of customer retention marketing, let’s look at some of the metrics you need to know to launch a customer retention campaign of your own.

Customer Churn Rate

Customer churn is the rate at which customers stop doing business with you. This number helps you see the rate at which you lose customers. You can measure churn rates over various amounts of time, but it’s most often measured on an annual basis.  

Find It: (Number of Customers at Start of Year – Number of Customers at End of Year) / Number of Customers at Start of Year

Revenue Churn Rate

Revenue churn rate is the percentage of revenue you lose as a result of existing customers canceling a service with your business. This is mostly relevant to SaaS and subscription businesses, as it helps them see the revenue they lose as a result of customers deactivating their accounts. In the equation, MRR is monthly recurring revenue.