Churn Rate

Churn rate is a business metric that measures the rate at which customers stop using a company's product or service during a specific period, often expressed as a percentage. To calculate Churn Rate, divide the number of customers who stopped using the product or service ("churned" customers) by the total number of customers at the beginning of the period. A high churn rate suggests that lots of customers are leaving, which can be problematic. Businesses monitor their churn rate closely because retaining existing customers is often more cost-effective than acquiring new ones.