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Churn (Customer Churn)

Churn is the turnover of customers of a business or users of a service. The churn rate determines growth and business earnings and is usually measured in percent. A company has to earn and re-earn the loyalty of its’ customers over and over again. For a company to expand its clientele, its growth rate, as measured by the number of new customers, must exceed its churn rate.

To reduce churn, it’s important to know if your customers are satisfied and keep them satisfied. Commonly, companies use surveys (see: Net Promoter Score) to help them collect this important data. By adjusting product developments to customer needs and keeping a high-level of satisfaction, churn can be reduced.