Churn rate measures the percentage of customers or revenue lost within a specific timeframe. For recurring-revenue businesses, it’s a key indicator of customer satisfaction and overall retention health.
Analysing churn helps reveal the reasons behind attrition, such as poor onboarding, limited product adoption, or competitive alternatives.
Reducing churn requires a coordinated effort across the entire business. Marketing plays a role in maintaining engagement and reinforcing brand value, while customer success ensures clients continue to see measurable outcomes. When managed effectively, lower churn leads to stronger profitability and higher customer lifetime value.