Customer Churn

Understanding Customer Churn

Customer churn refers to the rate at which customers stop doing business with a company over a specific period. A high churn rate indicates that a company is losing customers quickly, which can be a sign of poor customer satisfaction or a lack of product-market fit. Reducing churn is essential for sustainable growth, as retaining customers is often less expensive than acquiring new ones.

Strategies to Reduce Customer Churn

• Improve Customer Service: Providing excellent support can help retain customers.
• Enhance Product Features: Regularly updating products to meet customer needs can reduce churn.
• Engage with At-Risk Customers: Proactively reaching out to customers who show signs of leaving can prevent churn.

Related Terms and Concepts

Customer retention, lifetime value (LTV), product-market fit, growth metrics