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Churn
The number or percentage of customers terminating relationships with companies.
Implications
The rate at which customers stop doing business with a company, often measured as a percentage of total customers over a specific period, critical for understanding customer retention and the effectiveness of loyalty programs.
Example
Example: A subscription-based service monitors its churn rate to identify how many customers cancel their subscriptions each month, using this data to refine its retention strategies.
Related Terms
Different from customer acquisition, which focuses on gaining new customers, churn specifically addresses the loss of existing customers and the factors contributing to their departure.
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