Churn rate tells you how quickly customers, members, or revenue leave. Track it monthly to understand retention strength and spot issues early.
How to calculate:
- Customer churn: Lost customers in a period ÷ customers at the start of the period
- Revenue churn: Lost recurring revenue ÷ revenue at the start of the period (net churn includes upgrades and downgrades)
Improving churn often delivers bigger gains than chasing new sales. Analyze cancellation reasons, monitor failed payments, and provide proactive support to keep members engaged.
