Boston Brick & Stone - January 2019

Satisfied With Last Year’s Performance? Are You Sure You Should Be?

Calculate Customer Churn — And Learn How to Reduce It in 2019

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.

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 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.

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 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

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CHIMNEY

•Inspection •Restoration and repair •Construction •Sweeping

FIREPLACE

•Inspection, restoration, or repair of an existing structure •Installation or reconstruction of new structures

“Mark Peters went the whole nine yards and then some in completing

HARDSCAPE

•Backyard patios •Outdoor kitchens and barbecues •Outdoor steps, walkways, and paths •Retaining walls •Outdoor fireplaces •Driveways

the waterproofing of two existing brick planters and removing 160 square feet of used bricks in the backyard to comply with instructions from my arborist. He taped out an area of herringbone bricks to be removed and be completely aesthetic and feng shui with the design of the yard. The folks doing the work were competent and very nice.” – M. N.

HISTORICAL RESTORATION Our previous restoration work includes the following:

•Restoration of the main lobby chimney system of the El Tovar Hotel on the Grand Canyon’s South Rim •Repair and restoration of chimneys in 56 original historic cabins on the Grand Canyon’s North Rim •Historical chimney restoration for the lodge in Bryce Canyon National Park •Faithful restoration of the chimneys on the Nottingham and Arden properties in Beverly Hills

BRICK RESTORATION AND CONSTRUCTION DRIVEWAY CONSTRUCTION

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