Churn rateWhat it means for you.
The share of customers or revenue lost in a period because people cancel or stop buying.
Growth Score · Retention
Definition
What it means
Churn rate is the number of customers lost divided by the number at the start of the period. Even a small monthly figure compounds into a large annual loss.
Reducing it often grows a business faster than adding new customers.
Retention
Why it matters, with an example
Every point of monthly churn you remove adds to the customers you keep, so it often grows a business faster than adding sign-ups.
For example: Start the month with 200 customers and lose 6: churn is 3% for the month. Held for a year, 3% a month loses about 31% of that starting group.
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Retention
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FAQ
Quick answers
What is Churn rate?
The share of customers or revenue lost in a period because people cancel or stop buying.
Where does it sit in Growth Score?
It belongs to the Retention pillar, one of the 12 pillars your score is built from.
What should I read next?
Start with Customer retention and Voluntary churn, then browse the other terms in Retention.
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