Churn refers to the rate or percentage of customers who stop using a product or service in a given period.
If your business has 100 customers one month and the next month that number drops to 95, you've had a churn of 5% in that period (100-95/100).
The calculation can get a little difficult when there are new customers arriving.
In the same example, if you:
* You have 100 customers
* Lost 5
* Got 5 new clients
Your churn remains 5. You should not take new users into account when calculating the churn.
In the context of digital marketingespecially in subscription businesses or recurring revenue models, the rate of churn can be a crucial indicator of customer satisfaction and the overall health of the business.
One churn high can indicate problems with the product, service or customer support.
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