What is churn rate?

Uses

Glossary

Churn rate is the percentage of customers who stop using a company's product or service over a specific period. It's a key metric for understanding customer retention and business growth potential. A high churn rate often signals issues with customer satisfaction, product value, or service quality.

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How to use churn rate?

Businesses use churn rate to measure retention efforts and identify patterns of customer loss. To calculate it, divide the number of customers lost during a given period by the total number of customers at the start of that period, then multiply by 100. Example: If you had 1,000 customers at the start of the month and lost 50, your churn rate is (50 ÷ 1,000) × 100 = 5%.
By tracking churn monthly or quarterly, companies can test retention strategies – like improved onboarding or loyalty programs – and evaluate what's working to keep customers longer.

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What is churn rate?

How to use churn rate?

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