Understanding Customer Retention Metrics

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Today we take a deep dive into the concepts of customer retention and revenue quality in recurring revenue businesses. To help me unpack these ideas, I'm joined by Craig Zingerline, a serial entrepreneur who is now an advisor and mentor to a wide array of startups and technology companies. Among other things, we cover:

• A deep dive into the most common retention metrics, including which are most and least informative
• Situations in which high retention metrics might actually tell you that something is wrong within the business
• Things that he looks for that tend to be predictive of future customer retention
• Whether he cares about the difference between voluntary and involuntary churn
• How he thinks about software companies with high levels of service revenue
• Whether transactional revenue ought to be valued the same as per-user revenue
• And what else he looks at to evaluate the revenue quality of any given recurring revenue business

Please enjoy!