The Definition Of Churn - Deepstash

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The Definition Of Churn

Churn can most basically be defined as resources lost in a given period of time. Typically it’s referring to users or revenue lost and is usually represented with either a percentage or dollar amount.

For example, if you had a 5% monthly user churn rate, that means each month 5% of your customer base is cancelling.

Or if you said you had $2,000 in monthly revenue churn, that means you lost $2,000 in monthly recurring revenue from either customer cancellations or downgrades.

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  • User churn is the number of customers you’re losing in a given timeframe (typically per month or year).
  • Revenue churn, which is arguably even more important, is the amount of revenue you’re losing in a given time frame due to downgrades or cancellations.

Here are a few signs/red flags that you might have a churn problem:

To get more clarity, look at your churn by customer segments or cohorts.

Listening to your customers (and acting on their feedback) directly impacts churn.

Ask your customers why they are cancelling. Make sure you customize the cancellation reasons in your survey based on your product.

You can build Customer(or Brand) Loyalty by:

Typically, one of two things happens when your customer’s payment fails:

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