As a Teachable business owner, customer retention rate (CRR) is a crucial metric for assessing the success of your operations. CRR is a measure of the percentage of customers who remain active users of your course over a given period. In this article, you'll learn how to calculate and improve your CRR using Teachable and Google Analytics. Let's start by understanding what CRR is and why it's essential for your business.
Understanding Customer Retention Rate (CRR)
Customer retention rate, also known as customer loyalty, is a metric that measures how long your customers stay subscribed to your product or service. It indicates the percentage of customers who continue using your Teachable course over a certain time frame. CRR is of utmost importance because it reflects your business's ability to retain customers and reduce churn rates.
What is Customer Retention Rate?
Customer retention rate is the percentage of customers who continue to use your course over a particular period. To calculate your CRR, you need to determine how many customers you had at the beginning and end of the period in question. The difference between these two will give you the number of customers who continued using your Teachable course. Then, divide that number by the number of customers at the beginning of the period, and multiply by 100 to get the percentage CRR.
It's important to note that the time frame you choose to calculate CRR can vary depending on your business model. For example, if you offer a monthly subscription, you may want to calculate CRR on a monthly basis. However, if you offer a yearly subscription, you may want to calculate CRR on a yearly basis.
Why is CRR Important for Your Teachable Business?
CRR is critical for your Teachable business for several reasons. First, it's a measure of customer satisfaction. A high CRR indicates that your customers are satisfied with the content and value you're offering, enhancing brand perception and customer loyalty.
One way to increase customer satisfaction and therefore CRR is to offer exceptional customer service. Responding to customer inquiries and concerns promptly and effectively can go a long way in building trust and loyalty with your customers.
It's also important to regularly evaluate and update your course content to ensure it remains relevant and valuable to your customers. This can help increase customer satisfaction and reduce the likelihood of them seeking alternative courses elsewhere.
Secondly, CRR is a cost-effective metric because retaining customers is cheaper than acquiring new ones. According to research, it costs five times more to acquire a new customer than to retain an existing one. Therefore, focusing on CRR can help you save money on marketing and advertising costs.
Finally, a high CRR reduces your churn rate, positively impacting your long-term business growth. Churn rate is the percentage of customers who cancel their subscription or stop using your course over a particular period. By reducing your churn rate, you can ensure a steady stream of revenue and potentially increase your customer base through word-of-mouth marketing.
In conclusion, CRR is a critical metric for any Teachable business looking to succeed in the long term. By focusing on customer satisfaction, offering exceptional customer service, regularly updating your course content, and reducing churn rate, you can increase your CRR and build a loyal customer base.
Setting Up Your Teachable Account for CRR Tracking
Before calculating your CRR, you need to set up your Teachable account for tracking. Here's how to do it:
Integrating Google Analytics with Teachable
To track your CRR accurately, integrate your Teachable account with Google Analytics. It's a widely used platform that offers detailed analytics and insights into your course's performance. By linking your Teachable course to Google Analytics, you can track your CRR, monitor user behavior, and analyze your customers' demographics.
Follow these steps to integrate Google Analytics with Teachable:
- Create or log in to your Google Analytics account, then create a new property for tracking your Teachable course.
- Copy the tracking ID provided by Google Analytics.
- Log in to your Teachable account and go to the Admin Dashboard. Under "Site," click on "Settings," then "Analytics."
- In the box labeled "Google Analytics Tracking ID," paste the ID you copied from your Google Analytics account.
- Click on "Save" to finalize.
Creating Custom Reports for CRR Analysis
After integrating Google Analytics with your Teachable account, set up a custom report that monitors your CRR over time. Here's how:
- Log in to your Google Analytics account and navigate to the Admin Panel.
- Under "View," click on "Customization," then "Custom Reports."
- Click "Create a custom report."
- In the "Metrics Group" section, select "Users."
- Drag the "Users" metric to "Metric Groups."
- Under the "Dimensions" section, scroll down to "Teachable Course Name" and drag it to "Dimension Drilldowns."
- Under "Filters," select "Include" and choose the Teachable course name you want to track.
- Click "Save" to finalize the custom report.
Calculating Customer Retention Rate (CRR) in Teachable
Now that you've set up your Teachable account for tracking, it's time to calculate your CRR so you can monitor it over time. Here's how:
Identifying Your Time Period for CRR Calculation
Start by selecting a time period for calculating your CRR. It's best to choose a time frame that's long enough to show trends and patterns but not too long that it loses its relevance. A monthly or quarterly CRR calculation is ideal.
Determining the Number of Customers at the Start and End of the Period
Next, determine the number of customers you had at the beginning and end of your chosen time period. In Teachable, go to the "Course" tab, then click "Users" to access your user analytics. You'll see a chart showing your total number of users for the selected time period.
Calculating the CRR Formula
Using the numbers from the previous step, you can now calculate your CRR using the following formula:
CRR = [(Number of Customers at the End of the Period - Number of Customers Acquired During the Period)/ Number of Customers at the Beginning of the Period] x 100
For example, let's say you had 200 customers at the beginning of the month and 250 at the end. You also acquired 45 new customers in that time. Your CRR would be:
CRR = [(250-45)/200] x 100 = 102.5%
Analyzing Your CRR Results
After calculating your CRR, you'll need to analyze your results to determine the effectiveness of your marketing and retention strategies. Here are some ways to do that:
What is a Good Customer Retention Rate for Teachable Businesses?
There's no benchmark for what a good CRR is because it varies by industry, competitive environment, and business model. Generally, a CRR above 70% is considered good for Teachable businesses.
Identifying Factors Affecting Your CRR
Look for trends in your CRR over time and identify any factors that affect it. For example, high churn rates could result from a lack of communication with your students or poor course content. Use this data to adjust your retention strategies and optimize your Teachable course.
Setting Goals for CRR Improvement
Based on your CRR analysis and identifying factors, set goals for CRR improvement and create an action plan. For instance, you could offer incentives to encourage course completion, create a better onboarding process, or provide exceptional customer service.
Strategies for Improving Customer Retention Rate in Teachable
Improving your CRR requires a strategic approach and an in-depth understanding of your students' needs. Here are some useful strategies for enhancing customer retention:
Enhancing Course Content and User Experience
Your Teachable course content and user experience should be top-notch to keep students engaged and satisfied. Review your content and ensure it's up-to-date, interactive, and easy to follow. Also, ensure your course is user-friendly and easy to navigate.
Implementing Effective Communication and Support
Effective communication and support are essential for keeping students engaged and happy. Respond promptly to student queries and concerns, provide helpful resources, and maintain regular communication through email or social media.
Offering Incentives and Loyalty Programs
Offering incentives and loyalty programs are excellent ways of encouraging students to continue using your Teachable course. Examples of incentives include discounts on future course purchases, early access to new content, or exclusive webinars.
CRR is vital for measuring and improving your Teachable business's long-term growth. By setting up your Teachable account for tracking and using Google Analytics, you can accurately calculate and analyze your CRR over time. Remember, a high CRR indicates customer satisfaction, cost-effectiveness, and business growth. Use the strategies outlined in this article to improve your CRR and build a successful Teachable enterprise.