Churn Rate
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PPC and SEO MarketingHow 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?
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.
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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