The measurement of the number of customers who stop using or purchasing products or services from a company is called
A) switching costs.
B) churn rate.
C) CLTV.
D) switch rate.

Question

Quizplus · Accepted Answer

The measurement described is commonly known as churn rate. This metric is used to track the rate at which customers are leaving a company, either by discontinuing a service or ceasing purchases altogether. Switching costs and switch rate are related concepts, but they typically refer to the costs or rate of customers moving to a new company, rather than leaving an existing one. CLTV, or customer lifetime value, is a separate metric that calculates the total value a customer will bring to a company over the course of their lifetime as a customer.

The Measurement of the Number of Customers Who Stop Using