In the marketing world, churn rate refers to the number of customers that discontinue service in a given time period. This applies to subscription-based services more than others because that business model thrives on recurring billing. If the churn rate is high it means the CLV is lower and there is a greater demand on new acquisitions. If the churn rate is lower than the rate of acquisition, then it is like a snowball, building more recurring revenue month after month.
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