Finance & Moneyadvanced
Churn Rate
Definition
The percentage of customers or subscribers who cancel or stop buying within a given time period. Monthly Churn Rate = (Customers lost ÷ Starting customers) × 100.
Why it matters
High churn destroys subscription businesses. You are constantly filling a leaking bucket. Reducing churn is almost always more valuable than acquiring new customers.
Example
You start the month with 200 subscribers and lose 10. Churn rate = 5%. That means if you add no new members, you'll lose half your subscribers in about 14 months.
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