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"Churn Rate" is a metric that indicates the proportion of customers who leave a service or product within a specific period. This is particularly considered an important metric in subscription-based business models, apps, and online services.
1. Evaluation of Customer LoyaltyA high churn rate indicates that customers are leaving the service, suggesting low customer loyalty. Conversely, a low churn rate indicates high customer satisfaction and that customers are staying with the service.2. Verification of Business SustainabilityFor sustainable business growth, it is important not only to acquire new customers but also to retain existing ones. A high churn rate may threaten the sustainability of the business.3. Improvement of Revenue Forecast AccuracyBy understanding the churn rate, it is possible to more accurately predict future revenue. This is particularly important for businesses that rely on subscription fees.4. Identification of Problem AreasBy analyzing the churn rate, it is possible to identify the reasons why customers are leaving the service and improve problem areas. This can enhance customer satisfaction and prevent churn.5. Optimization of Marketing and Product DevelopmentUnderstanding the reasons why customers leave allows for more effective marketing strategies and product development. It is possible to improve products to meet customer needs and create marketing messages tailored to the target audience.6. Maximization of Customer ValueBy reducing the churn rate, it is possible to maximize the Customer Lifetime Value per person.