How do I improve my churn rate?

Flip Keijzer, September 29, 2019

A lot of agencies focus on attracting new customers. It’s however equally important to retain your existing customers. Pulling in new customers (sales and marketing) is expensive. Battling churn (customers that leave) will make sure your existing customers stay with you. Keep an eye on your churn rate!

The importance of a good churn rate

Your churn rate will show you how many of your clients are loyal to your company. The churn rate of a company will show you how many customers/subscribers leave. A high churn rate means that a lot of your clients don’t come back to you. A low churn rate means that you’re able to bind customers to your company.

Churn rate is usually presented in percentages or total numbers of customers that unsubscribe or leave within a month or in a year. If you have a churn rate of 25 percent for example, it will mean that the average customer will stay with you for four years. The churn rate is important for the customer lifetime value (CLV) and the return of investment (ROI). Every customer that leaves means a loss in revenue and a loss on return of recruitment costs.

Aspects that influence your churn rate

Many different aspects influence your churn rate. Think of the conditions stated below:

  • The customer satisfaction rate. When customers are satisfied there’s a smaller chance of them leaving. A high customer satisfaction rate will usually also lead to more forgivingness when a mistake is made. A small company mistake will then usually not lead to unsubscribing or leaving customers
  •   Transfer and service costswill also influence your churn rate. When it’s expensive to end a service or to set up a new one with a competitor, it’s harder for customers to leave. As long as you pick up signals of dissatisfaction you’re able to keep these customers onboard before it’s too late.
  • It’s important to emphasize the value of your service or product. As long as customers see value for money they’re more likely to stay.

Customer retention with a wider product range

It’s foolish to bet all your money on one horse. The same goes for customer retention. Offering a wide variety of products or services is a good way to keep customers within your client base. A good example is to adopt services that are closely related to your core expertise. For example, do you run a text agency that’s specialized in writing business texts? Why wouldn’t you broaden your product range with communicative activities such as blog services, market research, data analyses, SEO or social media marketing? Other ways of bringing more variety to your company’s product range is to cooperate with partner companies. They might be specialized in services you can’t provide by yourself.

Maintain quality

Keeping a high level of quality is probably the best way to retain customers. There are several ways to take control of this.

A high service level

To survive in a competitive market, where competition is often fierce, a high level of service is an absolute must. Make sure that you apply this high level of service consistently in all practical areas of your business. Both in terms of technology (good hosting, a fast website, good content) and physical services (clear communication, good accessibility and the will to solve any problems quickly and effectively).


Reliability is a great business asset. A customer should rely on the agreements that have been made. This means that an agency communicates clearly how their contracts are set up and what happens when problems arrive. A clear communication on the rights and obligations is essential.

Onboarding of your employees

The strength of an agency also depends on the dedication of its employees. Onboarding improves your employer branding strategy and creates a better bond between the company and its employees. The result? Higher productivity and more involvement and cultural awareness.

The advantages of good onboarding are numerous: you make ambassadors of your employees, as an agency you become more attractive for new talent and you suffer less from staff turnover. These advantages result in a strong organization that is better able to retain clients for a long time to come.

Reduce that Churn!

A negative churn rate is the ultimate goal. In the ideal scenario, the number of new customers increase and the amount of customers leaving is brought down to a minimum. Improving your churn rate can be a challenging task, but it is certainly not a utopia if you pay enough attention to it. Make sure to have a good retention plan, keep a high service quality, have a proper onboarding system, a reliable IT-network and diversify your product range.

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