Churn

The loss of customers, subscribers, or recurring revenue over a given period.

Business & Work

In plain English

Churn measures how much of a customer base or recurring business is leaving. Companies may track customer churn, which counts customers who stop using a service, or revenue churn, which focuses on recurring revenue that disappears through cancellations or downgrades.

Example

If a subscription service starts the month with 1,000 customers and 50 cancel during that month, its customer churn rate for the period is 5%.

Sources

  1. Stripe: How to calculate customer churn rates