Churn Rate

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Churn Rate, often referred to as Customer Churn Rate or Attrition Rate, is a vital metric in business that measures the rate at which customers or subscribers discontinue using a product or service over a specific period. It is a crucial indicator of customer retention and reflects the health of a business’s customer base. Churn Rate is typically expressed as a percentage and is calculated by dividing the number of customers lost during a given time period by the total number of customers at the beginning of that period, then multiplying by 100.

By closely monitoring and managing Churn Rate, businesses can make informed decisions to improve customer retention, enhance customer satisfaction, and sustain long-term growth. Reducing Churn Rate can have a positive impact on revenue and profitability, as retaining existing customers is often more cost-effective than acquiring new ones.

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