Like most of my clients,
you probably wake up every day thinking about how to grow the business better and faster.
But there’s that one thought in your mind, wearing down your grand visions of the business, like water slowly wears down a rock.
It’s there, in the back of your mind, nagging like a headache.
Just the thought of it makes you wince a bit.
You’ve tried different ways to reduce churn but you’re still not happy with your current churn rate.
And you shouldn’t be.
Every percentage point above zero means the profitability of your business is being eroded.
The higher your churn, the more the erosion.
And here’s why you’ve been struggling so hard to reduce your churn.
You’re being hit the with a double shot of challenges that makes fighting churn so hard.
First, you’re experiencing what I call the A-R Confidence Imbalance.
Second, you’ve got the Burn of Churn.
Have a confidential call with Anita
the a-r confidence imbalance
I work with clients like you every day. And the thing I hear that they’re most focused on in their business is something I call the A-R Confidence Imbalance (Acquisition-Retention Confidence Imbalance). When I explain this concept to them, it’s like a heavy weight has been lifted off their minds.
Here are the basics of the concept:
The easy part for my clients is acquisition – They’ve learned and experienced a lot with marketing and sales over their careers. As a result, they have a lot of confidence there. Where their challenge lies, though, is having the same degree of confidence in customer retention and reducing churn as they do with marketing and sales.
And this imbalance isn’t their fault.
The problem is, no one really teaches retention in the same way as they do marketing and sales.
It’s not my client’s fault. It’s not your fault. It’s not anyone’s fault.
It’s that this information about retention isn’t readily accessible in the same way—there’s almost no courses or playbooks for retention and schools certainly don’t teach it. So naturally, there is a heavy confidence balance toward Acquisition activities, even though focusing on Retention often makes the most financial sense.
Looked at it this way, it makes a lot of sense.
The A-R Confidence Imbalance is just the first challenge you’re up against.
The second is the Burn of Churn.
the Burn of churn
I’m sure you’ve seen this before:
It’s a graph showing the impact of churn on revenue growth.
To me, it really shows what’s good and what’s not.
Yet, so many Founders, CEOs, CROs, VPs Customer Success I talk to think 5% churn is good.
Here’s the reality if you’re wanting to grow your business with 5% churn:
1) You’re losing 50% your customers each year
2) You’ve lost all the money, time and effort spent in acquiring and converting those churned customers
3) You’ll now have to work 4x as hard to grow the business.
You’ll need to
a) acquire a new, replacement customer
b) replace the exact amount of lost revenue
c) acquire a brand new customer to add to your overall customer count
d) add to your MRR count
So 5% churn—where you’re losing 50% of your customers each year + it costs 4x to replace customers and simultaneously grow—suddenly doesn’t look so good.
Never mind the immediate lost revenue, the lost second-order revenues, lower ARPU, lower LTV, negative word of mouth damage, damaged reputation and negative brand perception added on top.
When viewed this way, suddenly a 5% churn rate doesn’t look good in any light.
Want to get rid of your churn headache?
Have a confidential call with Anita
You’re likely at least thinking about getting rid of your churn headache if you’ve read this far.
All of my clients had some resistance to hiring me to help plan, execute and optimize their churn-eliminating actions.
→ They had gotten used to the stubbornness of churn and surrendered to thinking ‘It is what it is.’ ←
→ They had gotten used to the defeat of trying different tactics to only barely move the needle. ←
→ They had gotten used to blaming themselves for not being more competent and able to do more. ←
I hear these things all the time.
You’re certainly not alone.
the best way to see if i can help you
The best way to see if I can help you is to have a confidential consultation. I’ll ask you a few questions to assess your situation and then you decide whether you want to proceed further or not.
I know I’m not the best churn consultant for everyone.
But I am for some.
I only take on 3 new clients a month as I give my all to my clients. Their success is my success. Giving my clients the best I have to give so they succeed is very important to me.
So please be considerate of my time and yours.
If you’re not serious about reducing churn, please don’t apply for the consultation.
I’m looking to have conversations with those who are tired of feeling the pain of churn and want rapid relief from it.