If you ask most business owners how many new clients they acquired last month, they can usually provide an answer quickly. However, asking how many clients they lost during the same period may reveal a gap in their tracking.
For Thomas Berkley entrepreneur, founder of CSM Collective and an entrepreneur based in Cleveland, Ohio, sustainable business growth involves more than acquiring new customers. It also requires understanding why existing clients leave and developing strategies to improve retention.
Drawing on his experience building businesses after leaving the Air Force in 2018, Berkley highlights a challenge that many online businesses face: acquiring new clients while losing existing ones.
When companies focus heavily on sales and marketing but overlook client retention, they may struggle to turn new business into sustainable growth.
The Client Retention Problem Many Businesses Overlook
Online businesses, including coaching companies, agencies, consulting firms, and membership platforms, often invest considerable resources in acquiring new clients.
They track metrics such as cost per lead, customer acquisition cost, conversion rates, and sales performance. These measurements help business owners understand how effectively their marketing and sales activities generate revenue.
However, client retention deserves the same attention.
Consider a business generating $50,000 in monthly recurring revenue with a hypothetical monthly revenue churn rate of 20%. That would represent $10,000 in recurring revenue lost during the month.
The business would need to replace that revenue before accounting for additional growth. Depending on its acquisition costs and business model, replacing lost clients could require substantial additional spending.
Thomas Berkley Cleveland emphasizes the importance of understanding this relationship between acquisition and retention. New customer growth may look promising, but businesses also need to know how much revenue they retain over time.
Tracking churn, customer lifetime value, renewal rates, and client satisfaction can help business owners identify whether their growth strategies are producing sustainable results.
Why Clients Leave Online Businesses
Clients leave for different reasons, including changing budgets, evolving priorities, unsuitable services, and unmet expectations. However, communication and support problems can also contribute to customer dissatisfaction.
A client might experience a confusing onboarding process, receive little guidance after signing an agreement, or struggle to get assistance when a problem arises. Over time, these issues may reduce confidence in the service.
In such situations, the problem may not be the core product alone. The overall client experience may also need improvement.
This is where structured client success processes can help.
A Client Success Manager (CSM) works to help clients understand a service, navigate onboarding, remain engaged, and work toward their intended outcomes. Depending on the business, the role may include:
- Guiding clients through the onboarding process.
- Scheduling regular check-ins and progress reviews.
- Monitoring milestones and identifying potential obstacles.
- Coordinating support when clients encounter problems.
- Maintaining communication about progress and expectations.
- Supporting renewal conversations by understanding client needs and results.
Through CSM Collective, Thomas Berkley Cleveland focuses on the role of trained Client Success Managers in helping online businesses develop more consistent client relationships.
Effective client success does not guarantee that every client will stay. However, proactive communication and structured support can help businesses identify problems earlier and make informed improvements.
What Changes When Businesses Improve Client Retention?
A more structured approach to client retention can influence several areas of business performance.
When clients receive clear guidance and consistent communication, they may be better positioned to understand the service and make progress toward their goals. Businesses may also gain more opportunities to identify dissatisfaction before it leads to cancellation.
Potential benefits include improved retention, stronger client relationships, more referrals, and increased customer lifetime value. Actual results depend on the business model, service quality, customer needs, and execution of the retention strategy.
Another potential benefit is reduced pressure on business owners.
When client relationships depend entirely on the founder, communication and follow-up can become difficult to maintain as the company grows. Establishing defined responsibilities and assigning client management to qualified professionals can help distribute that workload.
This allows founders to focus more attention on strategy, operations, and business development while maintaining an organized approach to client relationships.
Why Thomas Berkley Cleveland Founded CSM Collective
The need for more structured client success processes is central to the purpose of CSM Collective.
The organization focuses on preparing and connecting Client Success Managers with online businesses. Its approach addresses two related needs: helping businesses find professionals who can support client relationships and providing aspiring remote professionals with a pathway into client success roles.
For businesses considering this approach, the first step is understanding their existing retention performance.
Start by identifying the monthly client churn rate, reviewing why customers leave, and examining how consistently clients receive onboarding, communication, and support.
These findings can help determine whether the business needs better processes, clearer responsibilities, additional client success support, or improvements to its underlying product or service.
Adding a CSM is not a substitute for delivering value. The role is most effective when supported by clear expectations, appropriate resources, and a service that addresses genuine client needs.
Start by Measuring What Happens After the Sale
For online businesses looking to grow sustainably, customer acquisition is only one part of the equation.
Understanding client retention provides another important perspective on business performance. By tracking churn, reviewing client feedback, and establishing consistent support processes, companies can identify opportunities to strengthen relationships and improve the customer experience.
Thomas Berkley Cleveland and CSM Collective highlight the importance of making client success a structured part of business operations rather than treating it as an occasional task.
If you run an online business, begin by calculating how many clients you lose each month and identifying the reasons behind those departures. Then compare your findings with your onboarding process, communication practices, and service delivery.
The goal is not simply to bring more customers through the front door. It is to build a business that consistently delivers value, supports its clients, and creates a stronger foundation for long-term growth.
Learn more about Thomas Berkley and his work through thomasberkley.
