- Karl Sakas, President & Agency Consultant at Sakas and Company

[sumonasumonakha.t]

So, what is a good churn rate? Well, there's actually no such thing as a "good" churn rate, and ideally, you should aim to lower this agency metric as much as possible.

But the truth is, you will lose [clients], that's just the nature of the [agency business model].

I think the right question is, " [What] is an acceptable churn rate? "

The answer varies, but a key factor is whether your agency focuses on retainer or project fantuan database -based work.

Karl Sakas


Karl notes that if you're at a retainer-focused agency and client turnover has been higher than 20%, you should be concerned. And a project-based agency may have client turnover closer to 30-50% annually.

To calculate your churn rate, you need to divide the number of customers you've lost within a period by the total number of customers you had at the beginning of that period. Then multiply that by 100 to get a percentage.

For example, if you started with 10 customers and lost 3 customers in the month of February, your "churn rate" would be 30%.