Churn is crucial because it directly impacts a company's revenue and growth. Churn refers to the percentage of subscribers or customers who cancel or don't renew their subscriptions during a given time period. High churn rates can be a sign of customer dissatisfaction and can decrease a company's revenue and its ability to grow.
From a financial perspective, acquiring a new customer is often more expensive than retaining an existing one. Therefore, understanding and reducing churn can significantly improve a company's profitability. Analyzing churn can provide insights into why customers are leaving, which can inform strategies to improve the product or service.