Churn Rate is the percentage of customers or subscribers who stop doing business with a company over a specified period. It measures how effectively a business retains its customer base and is critical for evaluating long-term profitability and growth potential. High churn rates indicate issues with customer satisfaction, product-market fit, or competitive positioning, signaling the need for improved retention strategies. Reducing churn is vital for sustaining revenue and enhancing customer lifetime value (LTV).
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