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:

1. Identify retention issues.

2. Improve customer satisfaction.

3. Optimize growth strategies.

Reducing churn is important for boosting recurring revenue and sustaining long-term business success.