churn-rate

Vocabulary Word

Definition

'Churn rate' is a business term that refers to the percentage of customers or subscribers who stop doing business with a company over a particular timeframe.

Examples in Different Contexts

In media streaming, if viewers unsubscribe from a channel, it affects the 'churn-rate'. A creative director might note, 'Our new content lineup aims to reduce the churn-rate.'

Practice Scenarios

Tech

Scenario:

The product’s interface is great, yet we are experiencing large number of subscription cancellations. That needs to be addressed efficiently.

Response:

Do we have any insights on why the churn rate is high? Maybe we can improve the product in a way that meets the customer's needs better.

Customer-Service

Scenario:

While we're successful at attracting new customers, keeping them engaged is becoming a challenge. We need to explore ways to improve our service.

Response:

Exactly, we need to understand the pain points causing the high churn rate and address them effectively.