Analytics
Churn Rate
Churn rate is the percentage of customers who stop using a product or service during a given time period. It is a critical metric for subscription-based businesses to monitor customer retention health.
Examples
A SaaS company with a monthly churn rate of 5% loses approximately half its customer base each year if not offset by new acquisitions.
Best Practices
Analyze churned customer feedback to identify common reasons for leaving and implement proactive retention campaigns.