Most founders obsess over revenue, but the real canary in the coal mine is customer retention rate. Here’s why:
- A 5% increase in retention boosts profits by 25–95% (Bain & Co)
- It costs 5x less to retain a customer than acquire a new one
Early on, we used {YourTool} (link) to track retention with their cohort analysis feature—it exposed a 40% churn rate for users who skipped onboarding. Fixing that doubled our 6-month retention.
Action step: Calculate your retention rate this week: [(Customers at end of period - New customers) / Customers at start] x 100. Share your number below!
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