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What is the churn rate A high churn rate signals dissatisfaction or better alternatives elsewhere, prompting companies to improve service quality or customer engagement strategies to retain users. Churn rate, also known as the rate of attrition or customer churn, is the rate at which customers stop doing business with an entity.

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Churn rate refers to the rate at which your business loses customers It's a key metric for businesses to measure customer retention Customer churn rate is the percentage of customers that stop doing business with a company over a designated time frame

Learn more about it in our guide.

What is customer churn rate Customer churn rate is the percentage of your customers or subscribers who cancel or don't renew their subscriptions during a given time period, such as a month or a year The churn rate is usually expressed as a percentage and measured monthly or annually. Churn rate, also known as attrition rate, refers to the percentage of subscribers to a service who discontinue their subscriptions within a given time period

For a company to grow its client base, its growth rate (i.e., its new customers) must exceed its churn rate. Churn rate, also referred to as attrition rate, measures the number of individuals or units leaving a group over a specified time period The term is used in many contexts, including in business, human resources, and it. Basically, churn rate measures how quickly you’re losing customers

So, for many businesses, it’s a metric they’d rather sweep under the carpet and avoid thinking about

But understanding churn rate is vital. Churn rate —also called customer churn, attrition rate, or customer turnover — is the percentage of customers who stop using your product or service over a specific period. It’s a direct reflection of customer value Churn is the ultimate form of negative feedback

It tells you that customers are not getting the value they expected from your product Churn rate is the percentage of customers who stop using a product or service over a specific period