MARKETINGGlossary

Churn Rate

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If your business is a leaky bucket, then the water that flows out of it is Churn. You can pour huge budgets into advertising (water), but if customers leave after the first purchase because of poor service (bucket holes), your business will not grow.

How to calculate Churn Rate?

Formula: Churn Rate = (Customers who left during the month / Total number of customers at the beginning of the month) × 100%

Example: You have a SaaS service. At the beginning of the month there were 1000 subscribers. Within a month, 50 people unsubscribed. (50 / 1000) × 100% = 5%. Your monthly churn is 5%.

What Churn is considered normal?

It all depends on the niche. For B2B SaaS (business software), 3-5% per month is the norm. But for consumer applications (for example, fitness trackers or streaming), the outflow can be 10-15% per month, which requires constant attraction of new users.

How to deal with churn?

01Onboarding (Adaptation)

Most customers leave in the first week because they simply don't understand how to use your product. Make the first steps easy and clear.

02Predictive analytics

Artificial intelligence can analyze user behavior. If a customer hasn't logged into your app for 2 weeks, the AI ​​signals: “The customer is going to leave! Give him a discount!"

/ FAQ

This is the dream of any business! This is when the income from existing customers (due to them buying more expensive tariffs - Up-sell) exceeds the income you lose from customers who leave.

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Churn Rate
/ Churn Rate

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