- A.The percentage of customers who cancel in a given period — the complement of retention, and one of the most important subscription metrics. ✓
- B.Comparing two versions of a marketing element with random assignment to estimate which performs better — the gold standard for marketing decisions.
- C.Search Engine Optimization — earning organic ranking on Google through technical, on-page, and off-page factors.
- D.The percentage of customers who cancel in a given period — the complement of retention, and one of the most important subscription metrics.
Churn Rate is the percentage of customers who cancel in a given period — the complement of retention, and one of the most important subscription metrics. The other options describe related but distinct concepts in Digital & Analytics — see the deep-dive guide for the full distinction.
How to think about questions like this
High churn destroys lifetime value and growth. Questions like this test whether you can distinguish Churn Rate from neighboring concepts. The most common trap is choosing a closely-related concept that sounds similar but applies in a different context.
When you see a definition question on an exam, do two things: (1) translate the question into your own words, then (2) generate the answer in your own words before reading the options. This avoids the cognitive bias of recognizing a familiar phrase as correct just because it is familiar.