Churn Rate

The percentage of customers who stop using your product or service during a given time period.

What is Churn Rate?

Churn rate (also called attrition rate) measures the percentage of customers who cancel their subscription or stop doing business with you during a specific time period. It’s the inverse of retention rate.

Churn Rate Formula

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

If you start with 1,000 customers and lose 50 in a month, your monthly churn is 5%.

Types of Churn

Customer Churn: Number of customers lost
Revenue Churn: MRR/ARR lost from churned customers
Voluntary Churn: Customer chooses to leave
Involuntary Churn: Payment failures, card expirations

Reducing Churn

Improve onboarding experience
Identify at-risk customers early
Provide excellent customer support
Regular engagement and value delivery
Address payment failures proactively
Collect and act on feedback

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Attribution Model

A framework for determining which marketing touchpoints receive credit for driving conversions.

Bounce Rate

The percentage of visitors who leave a website after viewing only one page without taking any action.

Click-Through Rate (CTR)

The ratio of users who click on a specific link compared to the total number of users who view a page, email, or ad.

Customer Lifetime Value (CLV/LTV)

The predicted total revenue a business can expect from a single customer account throughout their relationship.

Google Analytics

A free web analytics service that tracks and reports website traffic, user behavior, and marketing performance.

Return on Investment (ROI)

A measure of the profitability of an investment, calculated by dividing net profit by the cost of investment.

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