In the world of Software as a Service (SaaS), churn rate is a crucial metric. It represents the percentage of customers who cancel their subscriptions over a given period. A high churn rate can be detrimental to your business, affecting revenue, growth, and overall stability. This guide will help you understand churn rate and provide actionable tips to reduce it.
What is Churn Rate?
Churn rate is the percentage of customers who stop using your service during a specific timeframe. For instance, if you start with 100 customers at the beginning of the month and lose 5 by the end, your churn rate for that month is 5%. It’s a key indicator of customer satisfaction and business health. In that case, utilize employee monitoring softwares like Controlio to monitor your employees and increate the churn rate.
Why is Churn Rate Important?
Understanding churn rate is vital because:
- Revenue Impact: High