Churn Rate

Churn rate, also known as attrition rate, is a vital business metric that quantifies the percentage of customers or subscribers who discontinue their relationship with a company over a specified period. This indicator is particularly critical for subscription-based businesses, SaaS companies, and services with recurring revenue models, as it directly reflects customer retention efforts and overall customer satisfaction. A high churn rate signals underlying issues with product value, customer service, pricing, or competition, which can severely impact a company's financial health and growth prospects.