How to Deal with Leaks in Your Revenue Bucket

published 30.06.2020 09:00

by Inc.Com Columnists from inc.com
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The best companies have customer retention rates of over 90%--which means they only lose less than 10% of their customers on an annual basis.

Businesses with retention rates of 50% to 60%, on the other hand, have sprung serious rates in their revenue bucket.

To calculate your retention rate, simply look at the year-over-year figure of how many new customers you have brought in compared to the prior year.

This is where monitoring how your customers are using your product or service and taking a proactive approach in helping them use it more can be an effective retention strategy.

Start by measuring your customer retention rate, then shift into action by adding value to your offering and driving utilization to better connect the dots between your customers and your product or service.