The value destruction of churn

Why is churn so important? Is it more important than ARPU stimulation?
To get the answer we turn to the impact on the lifetime value of a customer.

Take the example of a group of customers with an average ARPU of €53 and a monthly churn rate of 1.3%. The average estimated lifetime value would be €4.077.

When we achieve an increase in ARPU of 10% (to €58.3) and maintain the same churn rate the average lifetime value increases to €4.485.

When we achieve a churn reduction of 10% (to 1.17%), instead of the ARPU increase, the lifetime value goes up to €4.530.

This shows that the lifetime value is mostly driven by churn.
Now the main question becomes which value driver is easier to improve?