Did your model show a high churn?

A good benchmark is to have a churn rate lower than 10% on average.

In real life it’s normal to have a high churn rate in the early stages of your business or product, but it’s a good idea to strive to lower it. It’s costly for your business to onboard customers to just see them disappear again.

You might want to consider reducing your churn rate in the 'Revenue' section of your financial model.

Ways to reduce churn can be to improve your product so it fits customers’ needs and work on customer retention and engagement. A quick fix can also be to lower your prices, but be careful as this will affect your ARPU and revenue.

Remember, when you edit your numbers you should feel confident in them. You might have a reason for a high churn rate and want to keep it at this level.

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