What is Churn Rate?

Churn rate is the percentage of customers who stop using a product or service during a specific time period. It's the inverse of retention rate and is critical for understanding customer satisfaction and business sustainability, especially for subscription-based businesses.

When to monitor Churn Rate?

Churn rate should be monitored continuously, particularly for subscription services, SaaS products, mobile apps, or any business model that depends on recurring customer engagement. Early detection enables proactive intervention.

When might Churn Rate analysis be complex?

Churn analysis can be complex when defining 'churned' users, dealing with seasonal patterns, voluntary vs. involuntary churn, or when customers have irregular usage patterns that make it difficult to determine true churn.

What is the importance of Churn Rate in Analytics?

Churn rate directly impacts revenue and growth, helps identify product or service issues, guides customer success strategies, influences pricing and retention campaigns, and is essential for forecasting and business planning.