How To Lower Churn Rate And Scale Your Agency

No one likes to see company churn rate increase – least of all agency owners who invest their time and money into every client relationship. Keeping your churn low is not only important, but it’s an essential part of any successful business.

What Is Churn? 

Simply put, the churn rate is the number of customers lost over the total number of customers. 

The higher your churn rate, the faster you lose existing customers and the more you need to replace them with new ones to offset that loss.

Here are 7 ideas on how to lower your churn and ultimately scale to a more stable agency.

  1. Forget One Call Close

In today’s world of hype, many startups get a little too excited about a one call close. But how does closing a deal with just one call add value? The only thing it does is give you the potential of not setting the right expectations and not being able to understand your clients’ true goals.

It takes a long time for even the best companies to close a deal, and that’s why not every close is a win – you have to stay on top of your leads after they initially convert into customers. Realize that selling takes a long time and many conversations with people who may not buy into what you’re selling right away. 

Set them up for the next call. Taking a little more time to research and understand your customers, what they want to achieve, and why they need your services will help decrease your agency’s churn rate.

1.Understand Your Products

One of the things we do at Hite Digital in our franchise model with our agencies across the US is to rely on data. It allows us to analyze what products are keeping clients for a long time. It helps us create better marketing strategies and business decisions. 

A recent study with Workstream showed that Facebook Ads on average, have a 25% turnover, which means that if you have 4 clients, you’re going to lose 1 every month. This is difficult at scale because once you get to 20 clients, you are losing 5 clients every month. With PPC, we see anywhere from 10-12% across the US, and with SEO on average, around 5%. 

We sell a lot of SEO, which means it drives down our churn. It doesn’t mean we don’t sell Facebook, but we typically attach our revenue to something really strong. If you are not scaling, maybe it’s because you are not selling the right products and not seeing the likelihood of them lasting a long time with your clients.

2. Find Good Lead Sources

Good lead sources are key for successful digital integration and stability. Hitting the right potential customers will yield better results for your organization.

A lot of agencies are running Facebook ads to get their leads. However, we are seeing a high churn rate on services sold by ads. At Hite Digital, we focus on strategic partnerships that bring in clients that are going to stay longer. One of our best alliances was with Dave Ramsey, paying anywhere from $100 to $150 per referral lead. 

What clients do you think to have the potential of staying longer? A strategic partnership with someone who is going to bring you clients vs. Facebook ads? Focusing on good lead sources will keep you prepared for your business ahead. 

3. Perform Audits 

You may have already heard this before, but auditing our potential clients’ accounts can help decrease your churn rate. At Hite, auditing allows us the power to set good expectations and come up with a really good game plan for our customers. 

Sometimes, we find that our potential client’s campaigns are not working as planned. We can specifically advise them on what’d we do to get them better results.

Having that knowledge is powerful in our selling techniques because it gives us the ability to confront them with their current situation and set clear expectations on how to help them.

4. Set Long-Term Expectations

In this world of digital marketing, it’s important to always look at the bigger picture. It’s not just about what you are going to be able to accomplish in one month, but what you’re going to be able to deliver in the following months or years. 

If the whole conversation with your client focuses on one month’s goal, it will probably fail. From a psychological point of view, your clients will be more engaged when you set the expectations for a longer period. 

5. Understand Churn

Churn is a particularly challenging topic. It can result from a variety of issues, and sometimes it’s difficult to identify without deeper analysis where to put the blame.

SEO will take around 6 months to deliver solid results. Facebook and PPC will take around 3 months. If a client cancels before the expected results, it’s not a product’s issue; it’s a sales issue. 

If the client cancels beyond the expected results date, it’s either a product issue or a service issue – we are not communicating results effectively. 

6. Analyze Data

Data analysis is vital to lowering your churn rate. If you want to grow and become more powerful, you have to understand your data. By measuring and understanding your clients’ data, you can adapt your marketing strategies to better suit their needs.


It becomes incredibly easy to see where you went right or wrong by tracking everything you do wisely, making future decisions much more efficient.

Learn To Scale Your Agency With The Digital Agency Hacker

One of the biggest challenges businesses face is how to retain existing customers for an extended period of time. When it comes to managing and growing your business, your churn rate is an essential metric to monitor. 

If you want to stay on top of your game, you need to keep your churn low and make sure you have as many new customers as possible. Contact Digital Agency Hacker for more information.