Customer Churn is a business problem that is imperative to mitigate in order to scale a business.

Churn – which means how many customers a business is losing – has a large and direct effect on the bottom line of a business.

To better understand the need to reduce customer churn, let’s explore two fictional organizations, “Acme Sports Club” and “Rising Stars Sports Club”.


Both clubs currently have teams of 20 players each at the 5th, 6th, 7th, 8th, 9th, 10th and 11th grade levels.

When a family joins either club in 5th grade and stays through high school, the club stands to make 85-90% of their overall revenue from that family in renewals. Conversely, only 10-15% of revenue from that family results from their initial, or sign-up year.

As such, both clubs should have a rock solid plan in place to make sure they are addressing the unique needs of each family in order to ensure they are getting the value they need to renew.