What does customer churn refer to?

Customer churn refers to the percentage of customers who stop using a product or service. This metric is crucial for businesses, as it indicates the loss of customers over a specific period, reflecting customer satisfaction and engagement levels. High churn rates can signal underlying issues, such as poor product quality, inadequate customer support, or intense competition, prompting companies to investigate the causes behind customer turnover and implement strategies to improve retention. Understanding churn is essential for effectively managing customer relationships and enhancing overall business growth.

The other options provide insights into different aspects of customer management but do not define churn itself. Option A discusses upgrades, which is related to customer improvement rather than loss. Option C pertains to customer retention and engagement, offering an average duration of customer relationships, while option D focuses on customer acquisition, illustrating growth rather than retention challenges. Each of these metrics plays a role in customer success but is distinct from the concept of churn.