What is the term for the percentage of customers who leave a service over a certain period?

The percentage of customers who leave a service over a specific period is known as the churn rate. This metric is crucial for businesses, particularly subscription-based models, because it helps assess customer satisfaction and the overall health of the customer base. A high churn rate may indicate dissatisfaction with the product or service, while a low churn rate suggests that customers are finding value and are willing to continue their relationship with the business.

Understanding churn rate allows startups to develop strategies for customer retention, improve their offerings, and ultimately enhance profitability. It measures not just the number of customers lost but provides insights into the reasons behind customer departures, which can inform marketing and product development strategies to address these issues. Thus, monitoring and managing churn rate is vital for maintaining and growing a customer base in a competitive market.