Churn Rate
Churn rate is the percentage of customers lost over a period, the counterpart of retention.
What churn rate is
Churn rate is the share of customers lost over a period: customers gone divided by customers at the start.
Subscriptions make it precise, since a cancellation is explicit. Regular ecommerce infers it from customers who stop buying past their usual cycle.
Why churn rate matters
Churn is the leak growth has to outrun. High churn means acquisition spend refills a draining bucket, and lifetime value never compounds.
Reading churn in ecommerce
- Define “churned” by your reorder cycle, not a fixed 30 days
- Track by cohort to see which months bought better customers
- Separate voluntary churn from failed payments
- Watch churn after price, shipping, or quality changes
Frequently asked questions
What’s the difference between churn and retention?
Two views of the same number: retention is who stayed, churn is who left. A 90% retention period is a 10% churn period.
What reduces churn?
Fixing the reasons people leave: product quality gaps, slow delivery, silent support. Exit surveys and negative reviews usually name the culprits directly.
Related terms
Customer Retention · Repeat Purchase Rate · Customer Lifetime Value · Dunning