The percentage of customers that discontinued using your company’s product or service during a specific period of time is known as customer churn. One of the most crucial KPIs for a developing company to assess is customer churn.
Although it’s not the most pleasant statistic, it can tell your business the truth about how well its customers are being retained. It goes without saying that your business should strive for a turnover rate that is as near to 0% as possible. Every business must constantly monitor its churn rate and treat it as a top priority in order to achieve this.
Organizations can figure out why clients are leaving by using their churned customers. You can utilize data from an analysis of how and when churn happens in a customer’s relationship with your business to implement preventative actions.
The number of total customers lost, the percentage of total customers lost, the valuation of lost recurring business, and the per cent of lost recurring value are all factors that different firms take into account when calculating customer churn rate.
Poor enrolment procedures, a lack of long-term customer success, occasional natural causes that affect all organizations, a lack of value, insufficient communication, and a lack of brand commitment are some of the factors that contribute to customer churn.