Mitigating panic churn during a downturn can minimize the disruption of economic uncertainty. Key to doing this is by focusing on at-risk customer cohorts. Not only is retention less vulnerable than acquisition to the short-term swings of a bad economy, but the rule of thumb that it costs five times more to win a new customer than to keep a current one becomes even more extreme in a downturn.
The markets are down, currencies are down, and inflation is up. While every downturn is different, these signals are familiar and they suggest we’re nearing a recession….
