Churn Rate

Churn rate is the percentage of customers who stop using your products and services. It can refer to account deletion/ deactivation, unsubscription of products, switching to another retailer better than you, and much more.

In simple words, the churn rate tells you how many of your customers leave within a particular period. It can be measured either quarterly, monthly, or annual.

The general formula for calculating the churn rate is –

Churn Rate =  (No. of customers lost / Total no. of customers) X 100

To reduce the churn rate, make sure you constantly engage with your customers by offering world-class service, listening to their pain points and solving them, making incremental improvements to your products, and prioritizing customer feedback.

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