Customer Churn

The number of customers who cancel your service or stop buying your products over a set period of time. 

You can calculate your churn rate by taking the number of cancellations over a specific period and dividing it by the total number of customers over the same period, and then multiplying that by 100.

e.g: you lost 100 out of 3000 customers in one month => 3.3% monthly churn rate

Reducing churn is crucial for business survival: acquiring a new customer can cost five times more than retaining an existing customer.