Churn Rate
Definition
Churn rate is the percentage of users or subscribers who leave within a set timeframe. It is a key metric for subscription businesses, as high churn means recurring revenue is being lost. Causes can include poor onboarding, unmet expectations, or better competitor offerings. Reducing churn often requires stronger customer support, loyalty programs, or product improvements. Monitoring churn helps predict long-term growth and sustainability.
Related Glossary Terms
- Customer Journey Mapping
- Customer Journey Mapping visualizes how customers move through stages like awareness, consideration, purchase, onboarding, and loyalty.
- Customer Journey Management
- Customer Journey Management focuses on designing, monitoring, and improving the end-to-end experience users have with a brand across channels.
- Customer Data Platform (CDP)
- A Customer Data Platform (CDP) unifies data from multiple touch-points, such as websites, apps, CRM systems, and support tools into a single, persistent customer profile.
- Customer Acquisition Cost (CAC)
- Customer Acquisition Cost (CAC) measures how much a business spends to acquire one new customer, including marketing, sales, and sometimes onboarding expenses.
- Custom Conversion
- A custom conversion is a user-defined goal in analytics or advertising platforms used to measure specific actions that matter to a business.
- CUPED
- CUPED (Controlled Pre-Experiment Data) is a statistical technique used in experimentation to reduce variance and improve test sensitivity.