customer churn rate

Why is Customer Churn Rate Important?

Understanding and managing churn rate is vital for several reasons:
Revenue Impact: A high churn rate directly affects revenue, as losing customers means losing recurring income.
Customer Acquisition Costs: Acquiring new customers is often more expensive than retaining existing ones. A high churn rate means increased customer acquisition costs.
Business Growth: Sustainable growth relies on a stable or growing customer base. High churn can stifle a company's growth prospects.
Market Reputation: A high churn rate can damage a company's brand and reputation, making it less attractive to potential customers.

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