Churn and retention are two sides of the same coin. While churn refers to the percentage of customers who stop using a product or service during a given period, retention focuses on the percentage of customers who stay. Understanding both metrics is crucial for businesses to get a complete picture of customer loyalty and business performance.

• Churn rate measures customer loss over a specific period, typically expressed as a percentage. For example, if 10 out of 100 customers leave in a month, the churn rate is 10%.
• Retention rate, on the other hand, measures how many customers continue to use the product or service over the same period. If 90 out of 100 customers remain after a month, the retention rate is 90%.

The relationship between retention and churn is inverse: a high retention rate means a low churn rate, and vice versa. By focusing on improving retention, businesses can reduce churn and increase long-term customer value. Retention strategies, such as improving customer engagement, offering personalized support, or adding value through loyalty programs, directly impact churn reduction efforts.