Digital Marketing & Analytics

Basic

Churn Rate

Percentage of customers who stop using a product in a given period.

Formula

\text{Churn} = \frac{\text{Customers Lost}}{\text{Customers at Start}} \times 100

Variables

\text{Churn}Churn rate (%)

\text{Customers Lost}Customers who cancelled

\text{Customers at Start}Total customers at the beginning of the period

Example

50 lost out of 1 000 → Churn = 5 %

Did You Know?

Reducing churn by just 5 % can increase profitability by 25–95 %, according to Harvard Business School research.

marketing churn retention saas

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