Retaining customers is way cheaper than acquiring new customers.
As the complexity in the business increases, so does the effort to retain customers. Retention is not only about preventing churn. It’s about providing your customers with an extraordinary customer experience.
To build a company with $100 million in annual revenues, the following are the 5 ways to do it-
1,000 enterprise customers paying you $100k+ per year each; or
10,000 medium-sized companies paying you $10k+ per year each; or
100,000 small businesses paying you $1k+ per year each; or
1 million consumers or “prosumers” paying you $100+ per year each or
10 million active consumers who you monetize at $10+ per year each by selling ads
People sometimes refer to “elephants”, “deers” and “rabbits” when they talk about the first three categories of customers. Let’s extend the metaphor to the 4th and 5th types of customers, and call them “mice” and “flies”.
I’m assuming here that you’re on the way to acquiring 10 million, you already have acquired many thousands of them. BUT you are now witnessing churn. A churn you never accounted for, churn which is eating your portfolio like a termite. It’s that leaky bucket which you’d have to fill asap!
How do you address the churn problem? Let’s look at different animal categories. Try to understand what you need to do to retain your target customers.
Read the full blog here- https://customersuccessbox.com/blog/5-ways-to-retain-a-100-million-customer-portfolio-in-saas/