The term churn is quite common in startups or businesses that use the recurring billing model. In other models, it is often known as cancellation rate .
Regardless of the term used by you and your team, the percentage of customers or revenue that the company loses is a fundamental key indicator for the sales team .
The cancellation rate or — in some cases — the return rate is a direct reflection of customer dissatisfaction with the product or service, the process or the relationship team.
Churn is not a KPI commonly belize mobile phone numbers database attributed to the sales team. This indicator can be interpreted as a failure in the customer loyalty process by other teams, such as after-sales, customer service or Customer Success .
“But the seller has already done his job, which is to sell, why should he worry about the cancellation rate?”
If the seller is unable to convey a clear message, answer questions and align expectations of what will be delivered after the purchase, they will certainly have problems in the relationship with the customer. This can often result in the cancellation of the service or the return of the product.
It is worth remembering that the cost of acquiring a new customer is 4 to 10 times more expensive than retaining them.
Effective growth is when, in addition to hitting sales targets, you manage to keep customers satisfied long enough to pay the CAC (Customer Acquisition Cost) and make a profit in the end.
This is a common question when it comes to this subject. Yes, there is a difference between KPI and metric, which, although both have similar concepts, are not the same thing .
Both measure the company's performance in executing its strategies, with one providing continuity to the other . While metrics are information about an action, KPIs are the results of an action.
For example: The number of leads in your database is a metric. The acquisition cost per lead (amount invested / number of leads) is a KPI.
Metrics are information and KPIs are results!
They work together to help us evaluate the outcome of each action, as well as the outcome of the campaign. The main types of metrics are:
Attraction: to optimize the attraction of new visitors;
Conversion: to understand how many of your visitors are becoming qualified leads;
Revenue: to monitor investments made and your company's financial results.
Metrics are responsible for measuring the success of all Digital Marketing work in your business.
The importance of sales indicators
Data Marketing should be implemented in the company as soon as possible. There is no need to start with many indicators or commit to very complex processes.
complex, but you must closely monitor your business performance .
To maintain a high-performance sales team, it takes more than just improving approaches and speech. The company, especially sales managers, must cultivate a data-driven culture .