This Premium feature has also been around for some time inside Zaxaa, but not many are aware of it…
If you sell a subscription/recurring product or service, do you know your Average Retention Rate?
Average Retention Rate simply means on average, how long a customer stays with you. Knowing this number will allow you to know how much you can spend on acquiring a customer without going negative.
For example, let’s say you sell Fitness Membership Site where you charge members a monthly fee. By joining your membership site, they get access to your step-by-step tutorials, strategies, tips and tricks, and a members-only forum.
Some members stay for more than a year. Some more than 2 years. Others stay for 6 months. Yet there are others who leave even before 1 month.
So what is the Average Retention Rate?
You can calculate it manually by hand, but that would be a hassle and time-consuming.
With our Average Retention Rate feature, you can INSTANTLY know your number, like this:
Once you know your Average Retention Rate, e.g. 5.3 months, you can then calculate how much a member is worth to you. Say they’re paying $50 a month, in this case each member is worth $265.
You then know not to spend more than $265 to acquire a new member. If you spend $100 to get a new member, your profits is $165 per member, etc.
To know your Average Retention Rate, simply go Product Stats page (reports >> my product stats) and you’ll know your Average Retention Rate INSTANTLY!
This feature is only for Premium Automation users only. If you’re not yet a Premium Automation user, simply upgrade your account and you’ll be able to enjoy this feature plus other cool features plus save thousands of dollars in Zaxaa fees.
Please leave your thoughts below… (and Like us too if you can)