Churn, also known as customer attrition, is the number of customers who leave an organization over time. It is usually expressed as a proportion of the initial client base.
Two types of churn exist:
Revenue churn: It calculates the financial loss from consumers who cancel or downgrade their subscriptions or services.
Customer churn: It determines how many customers terminate their subscriptions or services.
Businesses with subscription-based or recurring revenue models should track churn because it might affect revenue growth. A high churn rate means a company loses many consumers, which can hurt revenue. Low churn rates indicate client satisfaction and commitment.
Improve customer service, offer incentives for client retention, and regularly obtain customer feedback to lower turnover rate.