Customer churn rate
Customer churn rate is the percentage of customers or subscribers who stop being customers during a given period
What it means, how it is used and where it comes up, with its related concepts.
What it is and how it works
It is usually calculated by dividing the customers lost in the period by the number of customers at its start. It is a key metric for subscription businesses, telecoms, software as a service and banking, and is read alongside its counterpart, retention rate, and customer lifetime value.
It is important to specify what counts as churn and whether it is measured in customers or revenue, as they give different readings. High churn may point to problems with product, experience, price or fit with the audience acquired. The Spanish expression is also used in other contexts, such as basket or form abandonment, so it is helpful to state which one is meant.
Also known as
Churn rate, Attrition rate, Customer attrition
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