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Churn Rate Calculator

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What Is Churn Rate?

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FAQs

Churn rate is important because it directly impacts a company’s revenue, customer lifetime value, and profitability. High churn rates mean losing customers and their revenue streams, while also increasing the cost of acquiring new customers.

Churn Rate can be reduced by delivering frictionless onboarding experiences to leave your customers with a lasting impact, mapping user journeys, identifying pain points and collecting feedback to decide next steps, building a community around your product that strengthens the brand-customer relationship, leveraging technologies for a hyper-personalized user experience, and highlighting real value provided to a user to keep them coming back for more.

Churn prediction is a retention technique that uses predictive analytics to identify a group of users who are likely to churn so you can take steps to prevent churn.

Churn can be predicted by using WebEngage’s advanced segmentation techniques like Predictive Segmentation and RFM (Recency, Frequency, Monetary) Analysis, you can identify cohorts and segments of users who are about to churn.

Yes, a high retention rate typically corresponds to a low churn rate. This relationship exists because retention rate and churn rate are essentially two sides of the same coin. A high retention rate means that a large proportion of customers are staying with the business over time, indicating fewer customers are leaving or “churning.”

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