top of page

Customer Churn Rate

The rate (expressed as a percentage) for a defined period of time at which customers stop subscribing to a service.

50

Divide number of customers lost in a period by the total number of customers at the beginning of the period.


Example

Acme Industries had 1200 customers at the beginning of May. At the end of May, 49 customers had cancelled their subscriptions. 49/1,200 = .04 (4% monthly churn).


Usage

Customer Churn Rate helps you determine if you're losing customers at an acceptable rate (some loss is inevitable). If this metric is increasing, it could indicate that something about your product is causing customer dissatisfaction.

Subscribe to our newsletter, The Business of Product.
Don’t miss out!

Thanks for subscribing!

Coach Product Managers Logo

Prickril Consulting UG

Am Kirchwald 14
69251 Gaiberg

Deutschland

FOLLOW US

  • RSS
  • Facebook
  • LinkedIn

Want to accelerate your product career? Read about our approach.

©2022 Copyrights Coach PMs - Partially redesigned by FractalMax Agency

bottom of page