While gaining new customers is always desirable, retaining existing customers is equally important. Losing customers can significantly impact the finances of your business, resulting in lower overall profits and a slower growth rate. According to Gartner research, retaining and selling to an existing customer is more cost-effective and profitable than acquiring a new one.
If you’re a B2B software provider struggling to improve customer retention rates and prevent churn, you need to act fast and put in place strategies to keep your customers happy, satisfied and loyal throughout.
The first step toward customer churn prevention is tracking attrition at regular intervals (quarterly, monthly or annually) to identify trends or patterns. Thereafter, you need to understand why customers are replacing your software.