The customer churn rate is the percentage of users who unsubscribe in a specific period of time. A high rate means that the clientele is unfaithful to the brand . Telecommunications companies are a classic example of a high churn rate, sometimes higher than 25%. The importance of this indicator lies in the fact that retaining a client is much more expensive than acquiring a new one. In the case of startups , a high churn rate can also be a symptom that the value proposition is not convincing or that the user experience is not good, which leads them to abandon.
It is also known as customer attrition and is calculated by dividing the number of customers who unsubscribed in the period by the number of customers at the beginning of the same period.
Other names:
Customer attrition, churn, churn rate