Diane Kaern’s professional background includes sales management positions with corporations such as Hewlett-Packard and Siemens. Throughout her career, she has focused extensively on analysis and strategic planning. With Diane Kaern’s assistance, senior executives have been able to cut costs and increase productivity.

1. The Metrics of Gaining and
Retaining Customers
Diane Kaern

2. Introduction
• Diane Kaern’s professional background includes sales management
positions with corporations such as Hewlett-Packard and Siemens.
Throughout her career, she has focused extensively on analysis and
strategic planning. With Diane Kaern’s assistance, senior executives
have been able to cut costs and increase productivity.
Today’s business leaders have more tools for measuring the
effectiveness of their operations than ever. To build a stronger sales
chain and satisfy more customers, a company needs to monitor
several key analytics, including those focused on new and existing
customers.
Cost of customer acquisition, or CoCA, measures how much a
company spends in its marketing efforts to acquire one new
customer.

3. Gaining and Retaining Customers
• To figure out the CoCA, a company simply needs to total up all
expenses of sales, marketing, and advertising, including staff
salaries and commissions, for an indicated period, then divide by
the number of new customers brought on board within that period.
Customer retention, also called customer turnover or “net churn,”
is the figure measuring the percentage of customers who remain
loyal to a company. The cost of customer retention is typically far
lower than the CoCA. To calculate the retention rate, start with the
number of customers at the conclusion of a specified period.
Subtract from that figure the number of new customers acquired in
that same period, and divide the result by the number of customers
at the beginning of the period in question. Multiply the result by
100.