What is churn rate?

The churn rate is the percentage of users who unsubscribe over a specific period of time. A high churn rate means that customers are not loyal to the brand. Telecommunications companies are a classic example of high churn rates, sometimes exceeding 25%. The importance of this indicator is the fact that retaining a customer is much cheaper than attracting a new one. In the case of start-ups, a high churn rate might also be a sign that the value offer is not convincing or that user experience is poor, which means they leave.

It is also known as customer attrition, and it is calculated by dividing the number of customers who unsubscribe in the period by the number of customers at the start of the same period.

 
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