Churn Rate

What is Churn Rate?

Churn rate, also known as customer attrition rate, is the percentage of customers who stop using a company’s product or service over a specific period. A high churn rate can indicate issues with customer satisfaction or product-market fit, while a low churn rate suggests strong customer retention. Reducing churn is essential for maintaining revenue growth and improving profitability.

Ways to Reduce Churn Rate

• Improve Customer Support: Providing timely and helpful support can increase customer satisfaction.
• Enhance Product Features: Regularly updating and improving the product can keep customers engaged.
• Engage with At-Risk Customers: Identifying and addressing the needs of customers who may leave can prevent churn.

Related Terms and Concepts

Customer retention, lifetime value, user engagement, product-market fit