Business Case - Reduce Customer Churn

Step 1: How much is churn costing you?

Every service provider has to face the fact that certain customers turn to another service provider. But do you know how much of your profit is eaten up by churn? Do the math yourself and fill in the fields below...

  Annual revenue (USD): Revenue per subscriber (USD):
  Number of subscribers:  
  Churn rate per month (%): typically between 1% and 7%
  Cost per churn event (USD): typically between 200 USD and 600 USD
  Re-acquisition cost to replace each churner (USD): typically 10 times the cost of a churn event
  
 
  Annual number of churners:  
  Total churn event costs (USD):  
  Total re-aquisition costs (USD):  
  Total churn costs per year (USD): As a revenue percentage:

First, calculate your cost of churn.....

Each year you spend     on customer churn. Is this acceptable to you? Or do you want to reduce churn as much as possible?

Yes, I want to reduce the cost of churn !

P.S. Nexus Telecom offers comprehensive in-depth consulting services, products and systems which can reduce the amount of churners by up to 5%.
This may result in total annual savings of up to   

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