How sticky is your service?
Customer churn is an essential metric of service quality since the reasons customers stop using the service are often related to product quality. If a company has a lower churn rate, customers’ current value is higher, and future revenue growth is more effortless. A lower churn rate also means that more can be spent on customer acquisition since the lifetime revenue of an acquired customer justifies the expense.
Do your customers love the service after they try it, and do they stay engaged? By measuring customer churn, you can monitor if you are making progress in this field. The end game is to have long-lasting customer relations that yield a steady revenue stream.