Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

What Is Your Customer Attrition?

4 Mar 2023 · 1 min

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0:32

Mike Andes explains why customer attrition (churn) matters for businesses and gives a numeric example: with 100 mowing customers, losing 10 in one month equals 10% monthly churn. He emphasizes that a 10% monthly churn, annualized, means needing to replace the equivalent of your whole customer base each year to keep revenue flat.

Questions this video answers

10% monthly churn (10 out of 100).

At 10% monthly churn, you must acquire roughly 100 customers per year just to maintain the same revenue (the example frames this as replacing the full customer base annually).

Chapters

Ultimately, though, your attrition is a number that we need to know in our businesses, because that's how many customers you need just to keep the revenue the same as last year, how many clients you lost. Let's say, for example, you have 100 total mowing customers. If you lost 10 customers last month, you have a 10% monthly churn or attrition annualized. That means that over 100% of your customers are going to leave 10% every single month. That means that every single year you will have to get 100 customers just to stay at the same revenue that you are today.