A guide to churn

In the digital era, product managers must prioritize metrics like customer churn to gauge product health, focusing not only on growth but also on retaining existing users. Churn, a measure of customer loss over time, serves as an indicator of customer experience and satisfaction. Calculating churn involves determining the number of lost customers divided by the initial number during a specific period, providing insights into potential issues with service features, user experience, or customer engagement. Addressing churn requires strategies such as gathering user feedback, enhancing customer service, and building user communities to improve retention. Successful companies like Netflix and ICON have utilized sophisticated algorithms and client-centric approaches to maintain low churn rates and high customer loyalty. Understanding and acting on churn data can lead to significant cost savings, as retaining customers is generally more economical than acquiring new ones. Investing in customer service and fostering transparent communication can offer a competitive edge in retaining customers and enhancing product success.