Churn Rate

Churn rate is a metric that measures the rate at which customers stop using a product or service. It is typically expressed as a percentage of the total number of customers in a given period of time, and can be used to measure customer loyalty and the effectiveness of retention efforts.

For example, if a company has a churn rate of 5% per month, this means that 5% of the company’s customers stop using the product or service each month. High churn rates can be a sign of customer dissatisfaction or a lack of value being provided by the product or service.

Churn rate is an important metric for businesses to track, as it can have a significant impact on revenue and profitability. By understanding the reasons for churn and identifying ways to reduce it, businesses can improve customer retention and increase the lifetime value of their customers.