The rate at which customers or subscribers discontinue their relationship with a company or stop using its products or services.

A small business owner in the telecommunications industry might use the term "churn" when analyzing their customer base. For instance, let's consider a mobile service provider. The owner would track the churn rate to measure the number of customers switching to a different service provider within a specific period, such as a month. By monitoring churn, the business owner can evaluate the effectiveness of their customer retention strategies and identify opportunities to improve customer satisfaction. They may also use churn data to identify patterns or segments of customers who are more likely to churn and implement targeted retention initiatives, such as personalized offers or loyalty programs, to reduce churn and increase customer loyalty. Analyzing churn helps the business owner understand the health of their customer base, make data-driven decisions, and take proactive measures to mitigate customer attrition.