What does 'churn' signify in customer success?

Churn refers to the loss of customers over time, which is a crucial metric in customer success management. It represents the percentage of customers who stop using a company's products or services within a certain time frame. Understanding churn is essential for businesses because high churn rates can indicate dissatisfaction with the product or service, poor customer support, or better alternatives available in the market. Reducing churn is a primary goal of customer success strategies as it involves improving customer retention and fostering long-term relationships with customers. This metric directly impacts a company's revenue and growth potential, making it vital for customer success teams to monitor and address factors contributing to customer attrition.