What is Churn

Churn

Definition:

Churn or cancellation fee is the number of customers or subscribers who decide to cut their ties with a service or company for a certain period of time. For a company to expand its customer base, its growth rate (i.e., the number of new customers) must be higher than its cancellation rate.

The Churn in Online Marketing

Churn is of great importance in acquisition strategies, since it is not useful to obtain new customers if they do not stay in the company, in similarity to the bounce rate. It’s almost always cheaper and easier to retain customers than having to go through the process of acquiring new ones. Studying churn using analytics is the first step in understanding what is being done well in customer retention and identifying what actions could result in a higher retention rate.

Churn in E-mail Marketing

In email marketing, churn is the percentage of the list of subscribers whose email addresses are unsubscribed or bounced over a given period of time.

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