Low churn means satisfied customers and stable revenue. In a subscription model it is one of the most important metrics.
What it means in practice
Churn is the cancellation rate – the share of customers who stopped using a service in a period, e.g. cancelled their subscription. If 2 out of 100 customers leave in a month, churn is 2%.
Why it matters for your business
Low churn means satisfied customers and stable revenue. In a subscription model it’s one of the most important metrics – even small monthly churn has a big impact over a year.
Examples and good practice
- Ask departing customers for the reason.
- React to signs of dissatisfaction before a customer leaves.
- Show the service’s value regularly, e.g. in reports.
- Provide quick support.
How to use it in a sales conversation
When selling, set realistic expectations – clients who know what they get stay longer. Support and website care included in Novi hosting keep churn low.
