What is a Churn Rate?
The churn rate is the percentage of customers who stop using a product or service over a specific period. It's a key metric for businesses, especially in subscription-based models like SaaS, to measure how well they retain customers.
A high churn rate indicates that many customers are leaving, which can hurt long-term growth. Conversely, a low churn rate suggests strong customer retention and satisfaction.
Why It Matters:
Understanding churn rate helps businesses:
Identify retention issues.
Improve customer satisfaction.
Optimize growth strategies.
Reducing churn is important for boosting recurring revenue and sustaining long-term business success.
