Churn Rate

What does Churn Rate mean?

Churn Rate, also known as attrition rate, is a metric that measures the percentage of customers or subscribers who discontinue their use of a product or service over a specific period. It is a crucial key performance indicator (KPI) for businesses, particularly in subscription-based models or customer retention efforts.

Churn rate is calculated by dividing the number of customers lost during a given period by the total number of customers at the beginning of that period. A high churn rate can indicate issues with customer satisfaction, product quality, or competitive pressures, leading businesses to focus on strategies for customer retention.

Reducing churn rate often involves improving customer service, enhancing product features, and implementing targeted marketing and engagement campaigns to keep existing customers engaged and satisfied.