Churn is the antithesis of growth.
When you lose a customer, in order to grow by one customer, you have to first replace that customer you lost, and then add a new customer.
And when a customer leaves, they take the revenue they were paying you with them (often to a competitor!); but they also take other things, like negative sentiment, your employee’s morale, ammunition for the competition to use against you in future deals, and much more.
You know churn is bad, I don’t have to convince you of that. (Right?)
What’s even worse than having churn is not knowing why your customers churned. That’s why I say you need to know why each customer churned so you ensure no customer ever churns again for those reasons.
But I want to be clear that, whatever reason your customer gives you for why they churned, the details uncovered by your internal tracking, or (ideally) both, it all fits into one of two categories.
Let’s dig in…