Episode 80 - What Drives Retention

Author

Tom Burrell
December 19, 2025

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Welcome to episode 80 of the Retention Blueprint!  

This is the last episode before the holidays.

I wish you and your family a wonderful Christmas and a prosperous 2026.

My Christmas gift to you is my Retention Board Pack System.

The one slide that aligns leadership on retention priorities in under 15 minutes. 

This is a board-ready diagnostic that shows where retention is really won or lost across the customer lifecycle.

I have used it many times to align exco teams. 

If you want it, reply with ‘diagnostic’ and I’ll send it to you. 

I have seen many situations where the person who owns the retention target at the Exco level (think CMO, Chief Commercial Officer): 

(a) Don't come from a retention background 

(b) Don't control all the levers that actually drive retention.

Both of these are the norm. 

They may own CRM Marketing, for example, but don't control product, operations or service - all key elements that drive retention. 

This can mean overt pressure on CRM teams to deliver.

I have delivered 8-figure incremental revenue from CRM Marketing multiple times (check out my course to learn how to do this yourself). 

But to fundamentally shift retention numbers, getting CRM Marketing right is only part of the answer.  

So in this episode, we dive into what drives retention and how to dramatically impact the retention number.

I work with only one client at a time, so I can go deep on your problems and make a meaningful difference to your business. I have some availability for 2026, so if you are looking to improve retention and want a free strategy call, reply to this email with ‘Strategy call’.

📰 What Drives Retention 

The Retention Hierarchy of Needs drives retention. 

At the base of the pyramid is the value proposition, what you offer and at what price to whom. 

Factors that influence this include: 

  • What you offer

  • How you craft your offer, including tiers  

  • Product-customer fit (not market, because customers have different levels of fit)

  • Brand

  • Competitive offerings  

  • The organisation's customer culture - are you short-term profit-focused or customer-first?

Previous newsletters that cover topics in this space include: 

  • Episode 2: Customer Love = Growth 

  • Episode 13: How Improving Retention Can Double Profits 

  • Episode 14: When to Double Down on Customer Retention

  • Episode 25: The Retention Power of Customer Centricity 

  • Episode 44: The Hidden Cost of Reactive Retention 

  • Episode 69: Organisational Design for Retention 

Who You Attract 

The way you market your products and the target audience you choose significantly influence customer retention.

Run a blended CAC that is optimised for the lowest possible customer acquisition cost and you will overindex on low-value subscribers, because there are always more low-value customers in any given market. 

Use LTV to acquire customers by value; you’ll gain more high-value customers for better margins. 

I covered the Retention - Acquisition Connection in episode 5, also in the archive.

How You Handle Moments of Truth 

Key moments in the relationship occur during the first 90 days, in your digital experiences, when customers encounter a significant service issue, during product usage, or when they enter the cancellation journey.  

Customers are always, even subconsciously, asking questions like:  

  • Does it live up to the advertising?

  • Does it work? 

  • Is it useful? 

  • Am I valued? 

  • Do I still need this? 

  • Is there something better? 

  • I should go, but should I stay? 

At moments of truth, you succeed or fail in answering these questions. 

In the retention board pack system, there are over 580 moments split vertically across subscription e-commerce, publishing, B2B SaaS, Subscription App, Gyms, Telcos and Gambling. Reply to this email with the word ‘diagnostic’ if you want it. 

Previous newsletters that covered moments of truth include: 

  • Episode 37: What are Moments of Truth anyway? 

  • Episode 56: CRM Marketing at Moments of Truth 

  • Episode 68: Your Moments of Truth Optimisation Checklist 

In late January, I am running a private session for senior leaders responsible for the retention number. In this session, I’ll share behind-the-scenes case studies of how big brands optimise for the principles shared in this episode. To apply, reply with your name, organisation, and responsibilities, and I'll add you to the waitlist. 

Thank you for the engagement and support this year.

Until next year, 

Tom

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