The Cost of Losing A Customer (and how to change it)

Have you ever considered how much losing a customer is really costing your business?

It's often more than you think!

Churn is more than just about lost revenue. It's about:

1. The money spent to acquire the customer in the first place.

2. Time and resources dedicated to getting the customer up to speed.

3. Future revenue you're missing out on.

4. Unhappy ex-customers influencing potential new ones.

Calculating Your Churn Costs

Here's a simple formula to calculate churn:

The time frame can be a week, month, or even year, as you want to define it.

How Customer Education Fights Churn

Effective customer education can significantly reduce churn by:

• Ensuring customers understand and use your product effectively

• Demonstrating ongoing value

• Building stronger relationships with your brand

In healthcare, churn can have even more significant implications. Beyond financial costs, it can impact patient care quality and continuity. For healthcare companies, robust customer education isn't just about retention—it's about empowering healthcare providers to deliver better patient outcomes.

What’s your churn?

This week, calculate your basic cost of churn. Then, consider how improved customer education could impact this number.

Until next time,

Manasi

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