Introduction to Customer Churn

Learn about the basics of customer churn, different types of customer churn, and the effect of customer churn on a business.

Customer churn

It’s easier to retain current customers than acquire new ones, and it is also challenging to convince customers to return once they leave. Because of this, understanding, predicting, and preventing customer churn is crucial for long-term success.

In today’s world, where Software as a Service (SaaS) is the norm, the customer Retention Ratio (RR) is one of the Key Performance Indicators (KPI) to monitor for a SaaS business. Customer churn rates are just the other side of the coin. Once we know our churn rate, we also get the retention ratio. To stay ahead of the competition, we must know what percentage of customers are not likely to return in the next cycle. The better our prediction, the better our business performs.

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