#customer-churn

A high-value customer drives the bulk of business value. Vilfredo Pareto's 80/20 principle shows that the top 20 percent of buyers typically generate 80 percent of revenue, referrals and advocacy. Retaining these accounts through expectation-setting and proactive engagement costs 5 to 7 times less than acquiring new ones.

Buyer success means the people who pay you achieve their desired outcome through every interaction with your company. Jason Lemkin of SaaStr estimates 90 percent of revenue lives in the post-sale relationship. It is proactive and requires careful process design.

Bain and Company research shows reducing churn by 5% can boost profits 25-95%. Most churn traces back to broken processes and human error, not pricing. Fix the process first.