Churn Rate

What is Churn Rate?

Churn Rate

Churn Rate is the number of customers that have left your service or business over a given period. The customers have essentially had ‘churned’ down your business. Churn Rate can be calculated in regards to a number of customers lost, percentage of customers lost, the value of recurring business lost, and percentage of recurring value lost. For example, when calculating churn as a percentage of customers lost you divide the number of customers lost by the number of customers starting. This can be done quarterly or yearly, but recommended to be done quarterly.

By understanding your churn rate, you can get a better handle on how many customers you are actually retaining. Measuring the loss of customers will give you insight on what creates a higher retention rate. For the most part, it is much more expensive to acquire new customers than to retain existing ones.

Businesses using the recurring revenue model is traditionally where churn rate has been used. E-commerce has been adopting the metric slowly, but churn can be difficult to calculate in e-commerce. The difficulty stems from e-commerce businesses not knowing what counts as a customer churn event. Figuring that out is the key to calculating churn rate and having it produce important insights and measures for your business.

Churn Rate is a growth killer. Use churn rate understanding and measurements to better ensure the health of your business and produce long-term growth.

Free SEO Analysis
SEO Report in 26 Seconds
Or, see a sample report.

Book a Free, 30-Minute No Obligation Health Check (Valued at $1,000)

Speak with a seasoned Marketing Specialist today and get a digital marketing success roadmap analysis to ensure your company’s marketing is bulletproof AND future-proofed against new developments. 

Secure Your Session in One of Our Few Timeslots

What are Your Goals?

We Guarantee 100% Privacy.

Where do You Serve Customers?

We Guarantee 100% Privacy.

What's Your First Name?

What's Your Work Email?

3 arrows point to website CTA





Instantly Download Our FREE Guide

Where Should We Send Your PDF?


Ultimate Local SEO Guide PDF

Your Privacy is Protected.