What is Churn Rate?

Churn rate is the percentage of customers who stop using a product or service over a specific period. It is commonly used in subscription-based businesses to measure customer retention and satisfaction.

Churn rate is important because it helps businesses understand how well they are retaining customers. A high churn rate signals potential issues with customer satisfaction, while a low churn rate suggests successful retention strategies. Reducing churn can help improve customer loyalty, drive revenue, and support steady growth.