GLOSSARY

Churn rate

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Churn rate is the percentage of customers who stop using your product or service within a specific period. It helps you gauge customer retention and overall satisfaction.

What is Churn Rate?

Churn rate measures the rate at which customers discontinue using your product or service. It's crucial for startups as it indicates customer retention and satisfaction levels.

Why Churn Rate Matters

By tracking churn rate, you can identify areas for improvement in your product or service, reduce customer loss, and increase revenue.

Examples of Churn Rate

If you have 100 customers and 10 of them cancel their subscriptions in a month, your churn rate is 10% for that period.

Related Concepts

Churn rate is closely tied to customer lifetime value (CLV) and customer acquisition cost (CAC). Understanding and managing these metrics can help you build a sustainable business.

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