Metrics Part 2 – Customer Retention

I was at a conference earlier this year when the discussion came up around improving customer churn and a couple of points I am always curious about came up – (1) Why do you measure customer churn?  and (2) Who does the measuring and analyzing of that metric in your organization?

I see customer retention as a key metric and focus for a customer experience group.  I vote for leaving churn behind as a measure and developing a measure that helps focus efforts on improving the behavior we want – retention. 

I think it becomes a more interesting and actionable discussion, when you have a metric (or metrics) that focus on customer retention.  There are also different views of retention, for example –  

• # of accounts retained
• # of products/services within an account retained
• retained value

I don’t know but a “focus on reducing churn” sounds less customer focused than a “focus on increasing customer value”.  Some have said it is more about semantics (which could be right) but even so, semantics matter.  I’ve heard many versions of this phrase (Tom Peters to  Deming) but essentially you do get what you measure or at least that what’s people will focus on, so I think getting the focus on customer retention does matter, in the end.  What do you think?  And which one does your company measure?