Customer Churn

What is customer churn?

Customer churn is the percentage of customers who stop doing business with a company over a given period. In other words, it measures how many customers leave a product, service, or subscription rather than continue using it. Customer churn, also called customer attrition, is often measured using the customer churn rate, which represents the proportion of customers lost over a specific timeframe.

Example: The leadership team began closely monitoring customer churn after noticing more customers were canceling their subscriptions than expected.

Why customer churn is important

Tracking customer churn helps organizations understand how well they retain customers and where the customer experience might need improvement. A high customer churn rate can signal issues such as poor onboarding, limited product adoption, or gaps in customer education. By identifying the causes of customer attrition, companies can take steps to improve customer satisfaction and long-term loyalty.