This factor generates a very considerable alert for companies
Posted: Sat Jul 12, 2025 6:32 am
When we think about the application of this concept, the churn rate is characterized as a metric that highlights the customers who stopped doing business with your company in a given period of time.
Thus, this action can occur through the cancellation of a contract or non-renewal in the case, for example, of a distributor of adhesive labels that works with a subscription club or even a customer who no longer places orders.
as it is a clear representation of a loss of revenue, representing customers who, in theory, were lost and no longer had any contact or interaction.
Generally, when applying the churn rate, for example, in a corrugated cardboard box shop factory, an entire period is analyzed to obtain this reference and accurate data, taking into account monthly, quarterly or annual data.
In this way, the churn rate provides valuable information regarding your business, indicating issues such as customer satisfaction, how your company performs in the market, and even the performance of your competitors.
Therefore, the more your company pays attention to this factor, the more points will be improved, creating an environment of total effectiveness, generating loyalty and unique contact with the public.
Differences between churn rate and revenue churn
Even though the difference between both concepts and tools often seems complicated to understand, the difference between them is actually quite simple and easy.
While the churn rate as seen is a representation of the number of customers your company lost in a given period, revenue churn represents how much revenue is lost among that batch of customers.
Thus, this action can occur through the cancellation of a contract or non-renewal in the case, for example, of a distributor of adhesive labels that works with a subscription club or even a customer who no longer places orders.
as it is a clear representation of a loss of revenue, representing customers who, in theory, were lost and no longer had any contact or interaction.
Generally, when applying the churn rate, for example, in a corrugated cardboard box shop factory, an entire period is analyzed to obtain this reference and accurate data, taking into account monthly, quarterly or annual data.
In this way, the churn rate provides valuable information regarding your business, indicating issues such as customer satisfaction, how your company performs in the market, and even the performance of your competitors.
Therefore, the more your company pays attention to this factor, the more points will be improved, creating an environment of total effectiveness, generating loyalty and unique contact with the public.
Differences between churn rate and revenue churn
Even though the difference between both concepts and tools often seems complicated to understand, the difference between them is actually quite simple and easy.
While the churn rate as seen is a representation of the number of customers your company lost in a given period, revenue churn represents how much revenue is lost among that batch of customers.