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Product Metrics: Churn Rate vs Growth Rate
Principle: Churn rate measures how much an old customer is engaged with the business. This is different from the growth rate, which measures the scale at which the business grows.
Situation: High churn rate signifies that old customers are now not using the product or service. Growth rate focuses on the new customer segment.
Note: Generally speaking, the churn rate should be used when a business has reached maturity in terms of its feature delivery. For a young business or feature, growth rate proves to be a worthy metric to track.
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By HarshitPrinciple: Churn rate measures how much an old customer is engaged with the business. This is different from the growth rate, which measures the scale at which the business grows.
Situation: High churn rate signifies that old customers are now not using the product or service. Growth rate focuses on the new customer segment.
Note: Generally speaking, the churn rate should be used when a business has reached maturity in terms of its feature delivery. For a young business or feature, growth rate proves to be a worthy metric to track.