Customer Churn Rate refers to the percentage of customers who stop using a company’s products or services over a specific period. It is a key metric for businesses, particularly those with subscription-based models or ongoing customer relationships. A high churn rate indicates that a company is losing a significant number of customers, which can be a sign of dissatisfaction or better options available to customers. Conversely, a low churn rate suggests that the company is successfully retaining its customer base. Calculating the churn rate involves dividing the number of customers lost during a period by the total number of customers at the beginning of that period, and then multiplying by 100 to express the result as a percentage.
