Definition
Churn
Churn is the rate at which customers stop doing business with you over a given period. It is usually shown as a percentage. High churn means you are losing customers faster than is healthy, which forces you to win new ones just to stay level.
Churn measures customer loss. If you start a month with 100 customers and 5 leave, your monthly churn is 5 percent. For subscription and repeat-service businesses, churn is one of the most important numbers to watch.
Reducing churn is usually cheaper than replacing lost customers. Good service, timely follow-up, and win-back outreach to lapsing customers all help. Even a small drop in churn compounds into big gains in revenue and lifetime value over time.
Related terms
Ready to get your time back?
Start free today. Your AI team is up and running within minutes, while you retain total manual control over every single move.