This can involve spending well above five points of EBITDA each year just to be able to stand still. But a few of them have developed innovative ways of dealing with “churn” in a much more efficient manner. Some of these companies have been able to achieve 10% lower churn rates than their peers … with up to 20% less invested in retention!
Holding on to customers is getting tougher. Most companies in mass consumer subscription industries, such as telecoms, broadband or pay TV, are seeing significant growth in their retention investments.