Churn Rate

Churn rate means the percentage of customers or users who stop using a product or service during a period. In simple terms, churn rate shows how many customers leave. Churn rate is important because high churn can make growth harder and more expensive. Companies with low churn often have more stable revenue and stronger customer loyalty. For example, if a subscription company starts the month with 1,000 customers and loses 50, its monthly churn rate is 5%. Churn rate is not the same as slow growth. A company can add many new customers and still have high churn underneath.