CATEGORY > GLOSSARY
Customer Churn Rate
What Is Churn Rate?
The churn rate is the percentage of customers who cancel their subscriptions or stop using a service within a given period.
It is calculated by dividing the number of customers churned by the total number of customers at the beginning of the period, multiplied by 100%.
How To Calculate Churn Rate?
Churn Rate = (No. of Churned Customers / No. of Customers at Start of Period) x 100%
An Example of Churn Rate
A company has 1,000 customers at the beginning of the month and 100 customers churn by the end of the month.
Churn Rate = 100 / 1,000 X 100% = 10%
Insights About Churn Rate
The churn rate is a key metric for understanding customer loyalty and the health of a business. A significant churn rate could signal underlying issues with the product, service, or customer experience.
TOP BLOGS
The Ultimate Guide to Customer Success Management
Customer Success is not just about selling a product or providing support; it's a promise brought to life, guiding customers toward success while ensuring a delightful journey
21 September, 2023
The Ultimate Guide To Keeping Your Customer Churn in Check!
They say not all churn is bad. What do you think? I think so too, but don’t take my word for it. Some say all churn is bad and I’d give that to them but not take it personally!
15 February, 2023
Can a 1% reduction in churn result in a 38% increase in ARR?
When I started working on my Customer Success startup ZapScale my first thought was why should anyone spend on Customer Success and what value it brings.
23 April, 2022
Quality Content,
Straight To Your Inbox!
Subscribe for the latest blogs, podcasts, webinars, and events!
Write a Blog
If you have experience in CS and
a flair for writing, we’d love to
feature you.
Write to us on
hello@zapscale.com