What is meant by the term 'churn' in customer success management?

In customer success management, 'churn' specifically refers to the phenomenon of customers unsubscribing or leaving a service or product. Understanding churn is critical for businesses, as it directly impacts revenue and growth. High churn rates may indicate that customers are dissatisfied with the product, unable to see value, or perhaps finding better alternatives elsewhere. By analyzing churn, companies can identify potential issues, improve their offerings, and enhance customer retention strategies.

Recognizing churn allows businesses to develop proactive measures to keep their customers engaged and satisfied, thus ensuring more stable revenues and fostering a loyal customer base. This understanding helps organizations better address customer needs and build a sustainable business model over time.