Churn Rate

Churn rate refers to the percentage of customers or subscribers that a business loses over a specific period. It is an important metric for companies, especially those with subscription-based services, as it indicates how well they retain their customers. A high churn rate can signal issues with customer satisfaction, product quality, or competition. Conversely, a low churn rate suggests that customers are happy and staying loyal to the service. Understanding and managing churn is crucial for businesses to ensure long-term growth and profitability.