Churn (Customer Churn Rate)
The rate at which customers stop doing business with your company over a given time period.
Definition
Customer churn rate (also called attrition rate) measures the percentage of customers who discontinue their relationship with your business during a specific time frame. It's the opposite of retention rate.
How to Calculate
Formula:
Churn Rate = (Customers Lost / Total Customers at Start) × 100
Real-World Example
SaaS Company: Started the month with 1,000 customers, lost 50 customers by month-end.
Churn Rate = (50 / 1,000) × 100 = 5%