Abandonment Rate Concept
What is the Dropout Rate?
The churn rate, also known as churn rate, is a metric that indicates the number of users who decide to unsubscribe from the services of a company within a given period of time. It is used, fundamentally, to know the degree of loyalty of the clientele and, in any case, to know if the proposals that are made are simply attractive.
It is one of the indicators that should be paid most attention within the field of marketing, since it reveals how unfaithful the clientele is. If its value is high, it is because a serious rethinking of offers and measures has to be made, as well as methods to keep users within the firm.
Keeping the churn rate at a minimum is therefore an absolute priority, as it is much easier to keep customers than to attract new ones. At the same time, it is a more than proven fact, and one of the maxims of attraction marketing, that loyal clients of a firm are the ones who bring the most income.
Having already underlined the importance of the Abandonment Rate, we are going to know the concept a little more, deepening its usefulness, giving examples and even expanding it with more details. It is convenient to know it properly to assess not only its importance, but also the usefulness of this metric.
What is the Abandonment Rate for?
The Abandonment Rate is used to make an effective assessment with which to know the loyalty of a brand's customers. As we said before, if it is high, the firm has to propose new strategies to give sufficient reasons to users in order for them to stay and continue to use its services and / or products.
It is a good way to assess the marketing strategies used in terms of loyalty, as well as assessing whether the performance is adequate or whether they should be rethought. It stimulates teams and, at the same time, measures their effectiveness and the quality of their work objectively.
Dropout Rate Examples
Let's imagine, to give an example of Abandonment Rate, that in NeoAttack we have a base of 1000 clients and that, in a period of 60 days, a total of 200 leave for whatever reasons. They may have many reasons behind their decision, but the numbers make that clear.
In this circumstance, the dropout rate is 20%, the result of dividing all those who have left by those who had before, multiplying the obtained by 100.
More information about the Dropout Rate
Do you want more information about the Abandonment Rate? If so, we invite you to continue expanding with the content that we provide below. We hope they help you to continue learning and to apply this concept if necessary.
