What does a high churn rate usually indicate?

A high churn rate typically indicates that customers are leaving a business at a significant rate. This situation often points to possible issues in the customer onboarding process, highlighting a poor onboarding experience. If customers struggle to understand the product, find it difficult to use, or do not see immediate value, they are more likely to abandon it early on.

Effective onboarding is essential because it helps customers to adapt to the product or service quickly, ensuring they recognize its value. A lack of support or guidance during this critical initial stage can lead to confusion, dissatisfaction, and ultimately, the decision to discontinue using the service. Therefore, a high churn rate serves as an important signal that the onboarding process may not adequately address customer needs and expectations.