Business Development 2 minutes read

What is customer churn and why is it so important?

You have worked your way on how to attract the right customers and clients and make the right marketing decisions. Now that you are on the right path with your company, it is important to not lower your guard. And also to monitor all threats that can lower customer satisfaction and lead to customer churn.

What is customer churn?

Customer churn (also known as customer attrition) as a term represents the termination of the relationship between client and vendor. Simply put, you had a client and now he is leaving you - you have customer churn.

The cost of churn, which can be relatively easy calculated, is the cost of sales team included to acquire revenue (new client) that would replace the gap created by the churn, plus the marketing cost required to help the sale in this process.

Eliminating churn threats

Measuring customer satisfaction and conducting customer satisfaction surveys have been proven to be of great effect on business success and on the elimination of potential issues that could lead to churn. Being aware and keeping track of customer experience can help you gain insight into product or campaign success, customer loyalty, and of course, satisfaction.

Although some may argue that the response rate to customer satisfaction surveys is low, too low to make an impact, using the right form and right questions can make all the difference and skyrocket the response rates.

With gathered customer satisfaction feedback, you will be able to act on negative experiences as soon as they happen. Being proactive when collecting and overviewing negatives of your service or product can help you cut off the weak points, resulting in you eliminating potential churn threats.


There are many ways of calculating and eliminating churn threats, and there is plenty of information on them out there. But, there should be value in simplicity, in reaching out to your customer and asking them a simple question about their experience. Not only building loyalty and interacting with them but also transform your business into something present and the future customer can always turn to.