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#551: What We Thought We Knew About Retention and Customer Lifetime Value

Let's Talk Loyalty

CHAPTER

Impact of Free Trials on Customer Retention and Lifetime Value

The chapter explores the influence of free trials on customer retention and value, challenging the definition of when a person becomes a customer. It compares companies offering free trials to those that do not, emphasizing how free trials can lead to stronger retention by allowing customers to test the product before committing financially. The discussion delves into defining customers accurately, analyzing activity rates, engagement, revenue churn, and logo churn to effectively evaluate customer relationships and revenue growth.

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