Term
Churn Rate
Definition
Churn rate measures the percentage of clients who stop using a company's services or products over a specific period. It helps businesses understand how well they are retaining customers.
Where you’ll find it
You can find the churn rate metric in the analytics or reports section of the Business platform. It may not be available in all subscription plans, so check your plan details.
Common use cases
- To gauge the effectiveness of customer retention strategies.
- To identify trends in customer departures and address underlying issues.
- To compare retention rates over different periods or after strategic changes.
Things to watch out for
- Churn rate can vary greatly depending on the industry and business model. It's important to compare it with relevant benchmarks.
- A sudden increase in churn rate can signal operational problems or customer satisfaction issues.
- Churn rate does not differentiate between types of lost customers, such as high-value versus low-value customers.
Related terms
- Customer Retention
- Customer Satisfaction
- Analytics Dashboard
- Subscription Management
Pixelhaze Tip: Keep an eye on churn rate trends over time instead of focusing solely on monthly figures. Seasonal fluctuations or specific marketing campaigns can influence churn temporarily. Understanding long-term trends helps in developing more effective customer retention strategies.