Churn rate is a metric used to measure customer attrition in a business. It is calculated by dividing the number of customers who have stopped using a product or service by the total number of customers who were using it at the beginning of a given period. Churn rate is an important metric for businesses to track, as it can provide insight into customer satisfaction and loyalty.
Churn rate can be used to identify areas of improvement in a business. By tracking customer churn rate, businesses can identify which products or services are not meeting customer expectations and make changes to improve customer satisfaction. Additionally, businesses can use churn rate to identify customer segments that are more likely to churn and target them with special offers or incentives to retain them. By understanding customer churn rate, businesses can make informed decisions to improve customer loyalty and retention.
