SAT I SF I ED WI TH LAST YEAR ’ S PERFORMANCE? ARE YOU SURE YOU SHOULD BE? Calculate Customer Churn — And Learn How to Reduce It in 2019
addition to end-of-year churn, you’ll begin to notice trends that you can address. Does the highest churn always happen in the third quarter? Did you sell more subscriptions in 2018 but lose more longtime customers in the course of chasing those leads? Noticing how these threads lead back to your losses is the first step in decreasing your churn rate. Of course, it’s impossible to calculate your customer churn if you haven’t been tracking and measuring it throughout the year. If you haven’t, you now have the opportunity to do so for the coming year. Add monitoring these numbers to your resolutions for 2019.
of customers you started with in 2018 by the number of customers you lost in 2018. Churn can also be measured by the value of recurring business lost or as a percentage of recurring value lost. Choose the measurement that makes the most sense for your business. Why is this number so important? Think about it this way: Beyond representing how many customers flew the coop in 2018, churn represents an exponential loss of profit. Each year those lost clients don’t do business with you, you lose a year’s worth of potential revenue. By tracking customer churn throughout the year — ideally quarterly — in
You’re looking over last year’s numbers, feeling pretty satisfied about the results for 2018. Production increased and you have a lot to feel proud of overall. But what about those customers or subscribers who said goodbye to you in 2018? If you haven’t yet calculated your end-of-year churn, you should feel a little less comfortable. Looking at that churn rate is key to your business’s success. Most business owners say that if they could change one thing about their business, it would be their customer churn rate. Retention is key to success because it almost always costs less to retain a client than it does to attract a new one. Increasing client retention and reducing churn in the coming year can only happen if you know what your churn rate was last year. CALCULATING CHURN It’s not rocket science! One of the most straightforward ways to express yearly churn is to calculate it as a percentage of customers lost: Divide the number
...continued from page 4 MOST OVERLOOKED WAY TO GET MORE REFERRALS?
you connect with complementary attorneys and create win-win referral scenarios. I’ll show you how to build a quick list of several hundred attorneys in your metro/practice area, form trust- based relationships with lawyers, and establish an extensive referral network that delivers a flood of high- quality cases on a regular basis. This is one of the most powerful and overlooked marketing strategies I know. I highly recommend setting aside a few minutes to listen in and take notes so you can put it to use right away. If you’d like to know how to form your referral network, visit the link below or save it to listen to later when you have a few minutes. Speakeasy.marketing/referrals
If you approach them the right way, it’s not only a fantastic way to generate fast referrals, but also one of the best methods to establish multiple streams of high-quality referrals that fill your pipeline for years to come. The key to making this happen is finding, contacting, and cooperating with attorneys whose services complement your area of practice. For example, let’s say you’re a criminal defense attorney and you handle violent assault cases, but you don’t want to take on sex crimes. There may be other attorneys in your
area who handle sex crimes but don’t focus on violent assault cases. You can work with them to create a solid referral strategy that benefits the both of you: You take their unwanted approach other attorneys properly. Merely going to a networking group and shaking hands won’t cut it. Moreover, you can’t just pick up the phone and ask. That’s why, in Episode 117 of my podcast, I give you several examples, strategies, and specific steps to help cases and they handle yours. However, as I said, you have to
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