what is customer churn

Customer churn, also known as customer attrition or customer turnover, refers to the loss of clients or customers over a certain period of time. It is a key metric that measures the percentage of customers who stopped using a companys product or service during a specific time frame. The churn rate can be calculated by dividing the number of customers lost during that time period by the number of customers at the beginning of that period. Customer churn can be voluntary, where the customer decides to stop using the product or service, or involuntary, where the seller decides to end the business relationship with the customer. High customer churn rates can be detrimental to a business, as it can lead to a loss of revenue and negative word-of-mouth. Companies often use customer churn analysis to determine the causal factors and prevent attrition from happening in the future. To reduce customer churn, companies can focus on their best customers, analyze churn as it occurs, and reach out to customers in danger of churning to repair relationships.