What is Customer Churn? And How It Can Affect Your Business

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Keeping track of your customer metrics is important.

This includes the not-so-good metrics too. Such as return rates, negative reviews and worst of all, customers who leave your business.

We are Moment and today, we will focus on customer churn, what it is, some examples and how it affects your business.

So, What is Customer Churn?

Customer Churn refers to the rate at which your business loses customers. This number is quite easy to calculate.

For example, let’s say that at the beginning of the month, your business had 1,000 customers. By the end of the month, out of those 1,000 customers, 50 of them left your business.

That would represent a 5% customer churn for the month.

Customer Churn is an incredibly important metric to look at since it is more expensive to acquire a new customer than it is to retain one. Add that to the fact that every time you lose a customer, you’re also losing out on future recurring revenue.

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