Churn rate

The churn rate is the percentage of customers who stop using a product or service within a specific period. It measures customer retention and helps businesses understand how many customers are leaving, which is crucial for assessing growth and the effectiveness of retention strategies.

By tracking churn rates, businesses can gain insights into user satisfaction levels, identify potential issues with their product or service, and assess their overall growth potential.

The churn rate is calculated using the following formula:

Churn Rate = (Number of Customers Lost During a Period / Total Number of Customers at the Start of the Period) × 100

One of the ways to reduce churn rate is by applying different customer engagement techniques. For example, by sending targeted content through channels like push notifications, SMS, and email, businesses can proactively address customer needs, give loyalty rewards, and collect valuable feedback. It has been proven to strengthen customer relationships and ultimately reduce the likelihood of customers leaving.