Understand what churn rate is and why it's critical for e-commerce businesses.
Learn how to calculate churn rate and differentiate between voluntary and involuntary churn.
Discover methods to reduce churn and increase customer satisfaction.
Most important about
Churn
The rate at which customers stop doing business with an entity.
Critical metric for understanding customer satisfaction and loyalty.
Reducing churn is key for long-term business success and growth.
Imagine you own a cafe, and over time, you notice some regular customers stop coming. That loss of regulars is similar to churn in the business world. Churn refers to the percentage of customers or subscribers who stop using a product or service over a specific time period. It's essentially a measure of how many people decide to part ways with what you're offering.
Churn directly impacts a company's growth and profitability. High churn rates can indicate dissatisfaction with a product or service, signalling potential issues that need addressing. Moreover, acquiring new customers often costs more than retaining existing ones, so a high churn rate can also lead to increased marketing and acquisition costs.
Churn is a reflection of customer satisfaction and loyalty. It's a crucial metric that can offer insights into the overall health of a business. By understanding and addressing the reasons behind churn, businesses can foster stronger relationships with their customers, ensuring long-term growth and success.
Programme
3
Boost retention, loyalty and customer value with strategic segmentation, automation, and innovative programs.
Level
15
Turn happy customers into advocates
Cement your customers' loyalty with programs that acknowledge and reward their engagement and spending.
FAQ
Frequently asked questions about this concept.