Churn rate analysis involves measuring the percentage of customers who discontinue using a product or service during a given timeframe. This analysis holds critical importance for businesses aiming to enhance customer retention and satisfaction. By understanding why customers leave, companies can identify pain points, improve offerings, and develop targeted engagement strategies. Lowering the churn rate ultimately enhances customer lifetime value (CLV) and contributes to the long-term growth and sustainability of the business through increased loyalty and higher retention rates.