Churn Rate
Churn rate is the percentage of customers, subscriptions, or revenue a business loses over a given period.
Customer churn rate is calculated by dividing the number of customers lost during a period by the number of customers at the start of that period, then multiplying by 100. For example, starting a month with 500 customers and losing 25 gives a churn rate of 5%. Teams also track revenue churn, which weights each lost account by what it was paying.
Churn matters because recurring-revenue businesses grow on retention as much as on new sales. A high churn rate quietly cancels out acquisition efforts and caps how large the business can become, so even small improvements compound over time.
Lowering churn starts with understanding why customers leave. Collecting cancellation reasons and ongoing product feedback in Feedjolt helps you spot the patterns behind churn and prioritize the fixes most likely to keep customers.