Monthly Customer Retention Review Checklist for Accounting & Finance
A checklist for analysing customer retention metrics, identifying at-risk customers, and implementing strategies to reduce churn and increase lifetime value.
Built with ASIC regulatory requirements, AML/CTF compliance, Tax Practitioners Board obligations, and APES standards in mind.
Complete Checklist
- 1Calculate the monthly customer retention and churn rateCritical
- 2Compare retention rates against previous months and benchmarks
- 3Identify customers who have not made a purchase or engaged recentlyCritical
- 4Analyse the reasons for any customer losses during the month
- 5Review customer satisfaction scores and Net Promoter Score trends
- 6Assess the effectiveness of current loyalty or rewards programs
- 7Identify customers with upcoming contract renewals and plan outreach
- 8Review the average customer lifetime value and any changes
- 9Plan targeted re-engagement campaigns for inactive customers
- 10Gather and analyse exit feedback from customers who have left
- 11Review upselling and cross-selling opportunities with existing customers
- 12Assess the onboarding experience for new customers and identify drop-off points
- 13Implement at least one retention improvement action based on the analysisCritical
- 14Update the customer retention report and share with the team
Frequently Asked Questions
What is a good customer retention rate for small businesses?
This varies significantly by industry. Subscription-based businesses typically aim for 90 to 95 percent monthly retention. Service businesses may target 70 to 80 percent annual retention. The most important thing is to track your own rate consistently and aim for improvement. Even a small improvement in retention can have a significant impact on profitability.
What are the most effective customer retention strategies for small businesses?
Deliver consistently excellent service, communicate regularly and proactively, respond quickly to issues, personalise the customer experience, and ask for feedback then act on it. Simple gestures like remembering preferences, sending thank-you notes, or offering loyalty discounts can be very effective. The personal touch available to small businesses is a competitive advantage over larger operators.
How do we calculate customer lifetime value?
A simple calculation is: average purchase value multiplied by average purchase frequency multiplied by average customer lifespan in years. For example, if a customer spends an average of $100 per visit, visits 4 times per year, and remains a customer for 3 years, their lifetime value is $1,200. Track this metric monthly to understand whether your customer relationships are becoming more or less valuable over time.
Need help implementing these checks into your daily operations?
Our team can build custom checklists integrated into your daily operations workflow.