Churn rate is the percentage of customers who stop using your product or service during a certain time period.
Churn rate is calculated by dividing the number of customers you lost during that time period by the number of customers you had at the beginning of that time period.
For example, if you start your quarter with 400 customers and end with 380, your churn rate is 5% because you lost 5% of your customers.
Obviously, your company should aim for a churn rate that is as close to 0% as possible. In order to do this, your company has to be on top of its churn rate at all times and treat it as a top priority.
Churn rate is a very important metric because it is the most direct way to determine how successful your company is at retaining customers.