What is an acceptable churn rate for your digital agency? If you lose clients quickly, you will never grow and scale as much as you want to. If you want to sell at some point, this is one of the KPIs a potential buyer will look at. And in this video, I'll show you how to calculate churn rate, what is an acceptable churn rate for digital agencies, and what you can do to improve it.

Your churn rate should be UNDER 10%. That's right! If you're losing more than that, something is wrong. If your agency is losing clients faster, you need to take a close look at your processes and systems to find out where the gaps are and what you need to do better to lower that percentage.

0:00 Start
0:30 Acceptable churn rate
1:10 How to calculate churn rate
1:30 3 ways to improve churn rate

To calculate the churn rate:
(Number of customers lost) divided by (total number of customers) Churn rate %

3 ways to improve churn rate:
1- Only work with the right clients. There are no bad agency clients. There are only bad prospects and bad processes. Are you doing what you should to weed out the wrong clients?
2- Onboarding. Immediately after a new client decides to work with you, their next emotion is often rethinking their decision or feeling regret, so it's your job to make them feel comfortable and confident with their choice.
3 Communication. You need to communicate with customers early and often. Your customers always need to know what's going on. Make them feel part of the process so they know you're still working for them.

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JASON SWENK IS AN AGENCY CONSULTANT WHO GUIDES MARKETING AGENCIES THROUGH A MENTIONED FRAMEWORK TO GROW THEIR AGENCY FASTER AND EASIER.

Fresh out of college, Jason joined Arthur Anderson, a big five consulting firm. He quickly realized he could never work for anyone but himself. He decided to change course and start a digital agency that quickly grew into a multimillion-dollar company, working with brands like AT&T, Hitachi, and Lotus Cars. After 12 years of steady growth, the agency caught the attention of larger agencies and Jason sold it in 2012.

Today, Jason runs http://JasonSwenk.com, a unique media and consulting company that helps marketing agencies grow faster and scale their agencies by applying the framework he himself used to grow, scale and ultimately sell his agency. Jason has helped over 10,000 agencies in 23 countries meet or exceed their business goals.

Jason currently hosts two shows that are available for download…

The Smart Agency Master Class Podcast is dedicated to providing agency owners and decision makers with tactics and strategies that cut through the nonsense and focus on exactly what works and what doesn’t; and

SwenkToday video series documenting one entrepreneur's journey to building another multimillion-dollar company, sharing the latest strategies and answering entrepreneurs' most burning questions.

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#Business

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