Customer churn is an important metric to track because lost customers equal lost revenue. If a company loses enough customers, it can have a serious impact on its bottom line. ... No matter how good a company's product or service may be, it's essential that they monitor their customer churn rate.

What is churn rate and why its importance?

Churn rate is a calculation that shows the percentage of subscribers of a business that are leaving. It can also be used to show the percentage of employees that are leaving a firm. Understanding a company's churn rate is one metric in understanding its financial health and its long-term prospects.

Why is churn so important in marketing?

A high churn rate forces a business to compete with the stress and difficulty of bringing enough new customers in to plug the holes in the ship. Even seemingly small, single-figure increases in churn rate (%) can quickly have a major negative effect on your company's ability to grow.