What is Churn Rate?
Churn Rate
Churn Rate is the percentage of customers or subscription revenue that a startup loses over a specified period.
Detailed Deep Dive
Churn Rate is the percentage of customers or subscription revenue that a startup loses over a specified period. High churn rates are dangerous as they make growth expensive by constantly depleting the customer base.
Frequently Asked Questions
Q:How is churn rate calculated?
Customers lost during period divided by starting customers in that period.
Q:Why is a high churn rate dangerous?
It makes growth expensive; if you lose customers as fast as you acquire them, you are spending money on a leaky bucket.
Quick Facts
- CategoryMetrics
- Key ApplicationCustomer retention and satisfaction metrics
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