churn

Vocabulary Word

Definition

'Churn' is often used in business to talk about customers leaving a company or service. So, if a lot of people stop using a phone service, the company has high churn.

Examples in Different Contexts

In the subscription-based model, 'churn' represents the rate of subscribers discontinuing their subscription. A CEO might express, 'Our churn rate this quarter is higher than expected, impacting our revenue forecasts.'

Practice Scenarios

Product

Scenario:

Reports from customer service signal an increasing dissatisfaction among our customers. Several customers have ceased regularly purchasing anything.

Response:

We need to understand why customers are churning. Perhaps we could run a survey to gather customer feedback.

Business

Scenario:

Our last quarter reports are indicating some troubling trends. The number of individuals discontinuing their subscriptions has gone up.

Response:

Yes, the increase in churn rate is concerning. We need a customer retention strategy to reduce the churn.