Churn
The proportion of customers, subscribers or employees who leave a defined group in a given period. The inverse of retention.
Full definition of Churn →:: COMPARE ::
ChurnvsNetwork effect
The short answer
Network effects raise the value of staying; churn measures how many leave anyway. A genuine network effect should show up as low VOLUNTARY churn — if it doesn't, the network effect is a story rather than a mechanism.
Side by side
| Aspect | Churn | Network effect |
|---|---|---|
| Measures | Departures | Value of staying |
| Direction | Out | In |
| Observable | Directly | Inferred |
| Relationship | One tests the other | — |
What each one means
Network Effect
A product gets more valuable to each user as more people use it. Value comes from the crowd, not the feature list.
Full definition of Network Effect →