Ready To Grow? Then Reduce Churn To Meet Your Goal!

by | May 15, 2018

Have you ever wondered if there is one goal or key performance indicator (KPI) that is more important than all others? Is there one single metric that, if you could nail it, would literally mean millions and millions in extra revenue and profit for any business?

Well, here’s some good news! If you choose to make it a priority, there is a single goal that will revolutionize your business: revenue-neutral churn.

The Goal You Need  

goal setting

Before I get into why revenue-neutral churn is the killer KPI you need, I want to ask you a question. How big would your company be right now if you never lost a single customer in all the years you’ve been in business?

I’d likely have additional sales of $7–8 million annually, maybe more. The problem is that we all lose customers. You can use media, like a newsletter, to decrease the number of lost customers each month and year, but never losing a customer just isn’t possible.

While completely stopping customer attrition, or churn, is impossible, there is a way to not lose money simply because a customer leaves. The Utopian goal of all businesses is revenue-neutral churn. Simply defined, revenue-neutral churn is when you focus on decreasing churn numbers via relationship, education, and events, etc., and focus on upselling your existing customers. That way, their additional spending makes up for any loss in revenue from the cancellations you can’t save.

Of course, getting to revenue-neutral churn is not easy, and in a few business models, may be impossible. But what if you could get to the point where only 10–20% of the churn affects sales numbers? The growth of your company would be incredible!

What Causes Churn?

customer retention

To have a chance at revenue-neutral churn, you first have to focus on all areas you have control over that cause churn.

Look at things like:

  • Relationship marketing
  • Pre- and post-sale education
  • Becoming an expert advisor in your customers’ lives
  • Having an upsell system to help customers solve additional problems they may be having.

If you really want to grow, the answer isn’t to just send your marketing team out to find more leads. The reality is that the best way to grow is simply by decreasing churn. You’d grow by upselling the customers you already have. And you’d grow by building a relationship and a follow-up system that helps you convert more prospects to customers.

Mo’ Leads, Mo’ Problems


Why don’t more business owners simply focus on the above areas of their businesses? The answer is simple, really. All you hear about is new customers, more leads, etc., so that’s what everyone focuses on.

The reason you hear so much about new leads is that it’s much easier to sell “new.” But “new” isn’t necessarily what’s best for you or your business.

If you really want to grow, focus on the goal so many of our big brother and sister companies focus on — finding a way to get revenue-neutral churn or finding a way to get as close to it as possible. Do that, and you’ll be swimming in cash in no time.


Constant communication is one of the most reliable ways to increase retention and boost customer loyalty. Learn more about how a newsletter can help you with increasing retention and reducing churn by requesting a complimentary copy of our book, “The Ultimate Guide to Newsletters.”

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1 Comment

  1. Sam

    Your information is of great quality, thanks for sharing.


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