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What is customer churn for a shop?

Churn is the share of customers who stop coming back over a given period. For a shop it is rarely a cancelled contract: regulars simply stop showing up, so the only way to see churn is to know who your regulars are and when they last came.

By The Fidelia team

How do you measure it?

Pick a period that fits your trade, longer than the usual gap between two visits: 30 days for a café, 90 days for a hairdresser. Churn is the number of customers who were active before that period and didn’t come during it, divided by the number who were active before. A customer who comes every week and hasn’t been seen for a month is a stronger signal than one who comes twice a year.

Why does it matter for a shop?

Winning a new customer usually takes more effort than keeping one you already have. Customers rarely announce that they are leaving; a reminder or an offer sent while they are only drifting away has a much better chance than one sent a year later.

How does Fidelia handle it?

Each customer’s last visit is recorded, so you can see who has drifted away. With Pro, you can send a push notification or an e-mail to customers not seen in 30 days, and set that e-mail as an automation that goes out by itself. Stats show new and returning customers per period, and the CSV export lets you do your own analysis.

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