What is churn rate and why is it important?

What is churn rate and why is it important?

Churn rate is the percentage of customers who stop using a service over a specific period. It's crucial because it helps businesses understand customer retention and satisfaction.

How do you calculate churn rate?

To calculate churn rate, divide the number of customers lost during a period by the number of customers at the start of that period, then multiply by 100.

What are some common reasons for high churn rates?

Common reasons include poor customer service, lack of engagement, better competitor offerings, and unmet customer expectations.

How can businesses reduce churn rate?

Businesses can reduce churn by improving customer service, engaging customers through personalized communication, and regularly gathering feedback.

What tools can help track churn rate?

Tools like CRM software, analytics platforms, and customer feedback tools can help track and analyze churn rate effectively.