What is Churn Rate?

A definition of Churn Rate

“Churn rate is the percentage of customers who stop using a company’s service over a specific time period.”

Churn Rate in Business Glossary - What is a Churn Rate?

Business Glossary > What is Churn Rate?


Examples of Churn Rate in a Sentence:

The company is working hard to reduce its churn rate.

High churn rates can indicate customer dissatisfaction.

Our goal is to maintain a low churn rate by improving customer satisfaction.

Why is Churn Rate Important in Business?

Understanding churn rate helps businesses identify retention challenges and develop strategies to improve customer loyalty. High churn rates can signal issues with customer satisfaction, impacting revenue and growth.

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Associated Terms

Here are some associated business terms and synonyms for “Churn Rate”:

  • Attrition Rate
  • Customer Turnover
  • Customer Loss Rate

Netflix Churn Rate

Netflix monitors its churn rate closely to evaluate customer retention and satisfaction levels. By understanding why customers leave, Netflix can implement changes to its platform and content offerings to reduce churn.

Final Notes on Churn Rate

Companies aiming to lower their churn rate should focus on understanding customer feedback, improving service quality, and creating compelling offers to retain customers.


This has been a definition of Churn Rate meaning.

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