Churn Rate
Churn rate – also known as customer attrition rate – refers to the percentage of customers who stop doing business with a company in a specific time period. To calculate a churn rate, divide the number of customers lost by the total number of customers at the start of the time period. Then multiply that number by 100 to get a percentage.
If the churn rate exceeds the customer growth rate, the company may incur losses in revenue and profits.
See also: Leads, Sales Funnel
