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Marketing vocabulary · Marketing Metrics

Churn rate

Meaning in marketing, with examples

nounCommon term

In marketing, churn rate means: The percentage of customers who stop using a product or cancel a subscription during a certain period, such as a month or a year.

In Turkish: müşteri kayıp oranı, terk oranı, churn oranı

How it is used

A key number for subscription businesses such as telecoms, streaming, software and gyms. Teams track, analyse and try to reduce churn, and customers who leave are said to churn. If 30 of 1,000 customers cancel in a month, monthly churn is 3%.

Example sentences

  1. Our churn rate jumped after the price increase in January.

  2. A monthly churn rate of 5% means we lose almost half of our customers in a year.

Common collocations

  • reduce the churn rate
  • monthly churn rate
  • customer churn
  • churn analysis
  • customer retentionKeeping existing customers buying from you over time, and the methods a company uses to stop them from leaving for competitors.
  • customer lifetime valueAn estimate of the total profit or revenue a company can expect from one customer for the whole time that person keeps buying from it.
  • customer satisfactionHow happy customers are with a product, a service or their overall experience, compared with what they expected.
  • KPIShort for key performance indicator: a measurable number that shows whether a team, campaign or business is reaching its most important goals.

More terms: Marketing Metrics

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