Avoiding Structural Churn

Many businesses encounter structural churn, which occurs when the market itself is unstable, leading to customer loss regardless of product quality. This issue is illustrated by a gym CRM company's high customer churn rate, attributed to the fact that a significant percentage of gyms go out of business annually. Consequently, businesses serving smaller or less stable customers may face similar volatility, impacting their own success. It's essential for entrepreneurs to recognize these market dynamics and consider targeting more stable customer segments to reduce risk and enhance business sustainability.