Customer churn refers to the percentage of customers who stop doing business with a company within a defined period. Churn can be a big financial burden on companies. The team at Qualtrics created a graphic filled with vital statistics on customer churn that highlights its importance. According to their data, American businesses lose $168 billion due to customer churn every year. With so much at stake, many companies would do well to strategize ways to lower customer churn. The statistics show that even a 5% decrease in churn can boost revenue by up to 95%. Businesses could choose to simplify their product purchase and delivery process. For example, music apps have the lowest 30-day churn rate thanks to ease of use and convenience. Pricing matters a lot too. While businesses have limited control over the prices they set, these do have a major impact on churn rate. The retail sector has some of the highest churn rates due to an abundance of competitors offering lower price options.
infographic by: www.qualtrics.com
