Customer satisfaction rate is among the effective ways to analyze churn data. It lets you know what your customers like or dislike. It also provides reasons why customers do not select a product or service.
Customer churn rate
It lets you know how many customers you are cio and cto email lists each month. It allows you to act on the number of customers you lose.
Customer engagement rate
It analyzes how customers behave in your business. It also explains how familiar your customers are with your products. This can promote engagement if customers interact more with your product or service.
How to reduce customer churn
Research says that 97% of users churn silently. This makes it a bit difficult to understand the reasons behind churn. Let’s discuss some practical ways to reduce customer churn;
Identify why customers churn
Conduct research on your business using a product analysis tool. Confirm your hypotheses and solutions for your products so you can get answers.
Start making changes after testing your hypothesis. Analyze the impacts and optimize to a level where you have improved products and created customer journeys.
Customer Acquisition Cost (CAC)
Every business needs to understand the cost and effort it takes to acquire new customers. The basic formula for calculating this metric is to divide the total sales and marketing spend by the total number of customers you have welcomed in the same period. Additionally, you need to know that other essential calculations are closely related to CAC, such as cost of goods sold (COGS).
The months it takes to recover the CAC
This is the period of time it takes to generate enough money to cover the cost of acquiring new customers. This feature is calculated by dividing the CAC by the MRR and multiplying the number by the gross margin percentage. The months it takes to recover the CAC.
Gross margin
Gross margin is the calculation of the overall revenue of the business by subtracting the total cost of business operations. You need to make sure that the cost of operation is calculated across all business departments.
Conversion rates
When evaluating any key SaaS metrics , conversion rate sits at the top of the mountain. This metric is meant to better understand the effectiveness of your products and services. Additionally, you can evaluate the value that the products and services you provide to your market audience.