Retention

Churn Rate

Customer Churn Rate

The percentage of subscribers who cancel their subscription during a given period. Lower churn rates indicate better customer satisfaction and product stickiness.

What is Churn Rate?

Churn rate measures the percentage of customers who stop doing business with you during a given time period. It's one of the most critical metrics for subscription businesses. Types of churn: - Customer Churn: Percentage of customers lost - Revenue Churn: Percentage of revenue lost (accounts for different subscription values) - Logo Churn: Number of accounts lost (regardless of revenue) Common causes of churn: - Poor product-market fit - Inadequate onboarding - Lack of engagement - Competitor offerings - Payment failures (involuntary churn) - Pricing concerns Reducing churn: - Improve onboarding experience - Proactive customer success outreach - Build switching costs through integrations - Implement dunning for failed payments - Offer pause options instead of cancellation

Formula

Churn Rate = (Customers Lost ÷ Customers at Start of Period) × 100

Example

If you start with 1,000 customers and lose 50, your churn rate is 5%.

Why Churn Rate Matters

Even small improvements in churn have massive compounding effects on growth and LTV.

Track Your Retention Metrics

Chargezen helps you monitor and optimize metrics like Churn Rate automatically.

Get Started

More Retention Terms

View all Retention definitions

Explore More Terms

Browse our complete glossary of e-commerce and subscription terms.

View Full Glossary
Space, at your fingertips

What would you do with 22% more revenue?