Churn is an English word that means “to shake vigorously”, and when transferred to the world of commerce, and specifically to digital marketing , it does not lose that meaning: it is an indicator that should shake us up.
The churn rate (also known as “abandonment rate” or “cancellation rate”) is an indicator of the number of customers who have stopped consuming our products and services.
This is a ratio that, like any indicator, is measured as a percentage and over a certain period of time. It is a particularly useful churn rate for companies that have recurring billing services, with subscriptions that are automatically renewed month after month, unless the customer cancels.
In this context, the churn rate would indicate how many customers spain whatsapp number database cancelled that subscription during the last month. This is essential for this type of company, since their business model is based on the consumption of a large customer base.
For example, all the alarm bells went off at Netflix in October 2020 when it was announced that its churn rate had gone from 2.1% to 3.5% in 30 days.
This meant, when compared with the streaming giant's growth estimates, that in three years (by adding and subtracting cancellations and new members) there would only be growth of barely 20,000 new subscriptions in the United States.
After analyzing the figures, it was established that the increase in the cancellation rate coincided with an increase in the subscription price and restrictions on the use of shared accounts.
The churn rate is an indicator that can be calculated for any company that has recurring customers and aspires to gain new and loyal ones.