What are churn rates and why are they important?

What are churn rates and why are they important?

Churn rates measure the percentage of customers who stop using a service over a specific period. They're crucial for understanding customer retention.

How can I calculate my company's 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 I reduce churn rates in my business?

To reduce churn, focus on improving customer service, enhancing product quality, engaging customers regularly, and gathering feedback.

Can you give me examples of companies with low churn rates?

Sure! Companies like Netflix and Amazon Prime have low churn rates due to their strong customer engagement and value offerings.