Customer Churn

Customer churn, also known as customer attrition or customer turnover, refers to the phenomenon where customers end their relationship with a business or service provider. It signifies the rate at which existing customers discontinue their association, usually by canceling a subscription, discontinuing a service, or ceasing to make repeat purchases. Churn is a pivotal metric for businesses as it directly impacts revenue and growth.

Churn can have various reasons, including dissatisfaction, better alternative options, changes in customer needs, poor customer service, or pricing issues. Organizations strive to minimize churn and retain customers, as it is generally more cost-effective to retain existing customers than acquire new ones. By studying churn patterns, businesses can identify the specific factors leading to customer disengagement and take proactive measures to mitigate churn through targeted retention strategies, improved customer experience, value-added services, personalized communication, and enhanced product offerings.