Analytics & Data
The percentage of customers who stop using a product or service over a given time period.
Churn Rate
Glossary Term
Analytics & Data
32
Total Glossary Terms
In our reference library
Churn rate is a critical health metric for subscription businesses because losing customers directly impacts recurring revenue. It is typically calculated monthly or annually by dividing the number of lost customers by the total customer count at the start of the period. High churn often signals product-market fit issues, poor customer experience, or ineffective onboarding. Reducing churn by even a few percentage points can dramatically improve profitability.
Concept Visualization
Real-World Examples
- 1Monthly churn
- 2Annual churn
- 3Revenue churn