…is my latest article at Chief Marketer. Here’s an excerpt:
“It’s inevitable that customers leave. Your customer base is constantly evolving, and your customer loyalty and retention metrics likely hide that natural dynamic. Traditional measures look at full attrition and ignore shrinkage, maintenance, and growth. Savvy companies look deeper and respond to incremental behavior changes within their customer base.
The two measures presented below, dollar retention rate and replacement rate, let you spot issues in your retention and customer development efforts early and focus your decision making on the results you really want – revenue and profit.”
Read the full article at Chief Marketer.
This was prompted by internal research we’ve been doing to identify trends in customer behavior that can help predict larger shifts in revenue in the future. We’ve found a lot of interesting stuff and spun off many ideas, of which this was one.