Question

Jordan notices a 4% drop in customer subscriptions each quarter over the last year. What is this 4% drop in subscriptions each quarter known as?

a) Attrition rate
b) Churn rate
c) Customer turnover
d) Subscription loss rate

Answer 1

The 4% quarterly drop in customer subscriptions that Jordan notices is known as the churn rate. It represents the proportion of customers who discontinue their subscriptions within a specific period, which is a key business metric for customer retention.

Step-by-step explanation:

Jordan has observed a 4% drop in customer subscriptions each quarter over the last year. This decrease is commonly referred to as the churn rate. The churn rate is a business metric that measures the percentage of customers who stop using a company's service or product within a certain time frame. In this case, a churn rate of 4% quarterly indicates that the company is losing 4% of its subscribers every three months. It is crucial for businesses to monitor their churn rate as it can be an indicator of customer satisfaction and product or service relevance in the market.