Concept

Churn Rate

The percentage of customers who stop using your product in a given period — the silent killer of subscription businesses.

Definition

Churn rate is the percentage of customers (or revenue) you lose over a period, usually monthly. It's the single biggest threat to subscription businesses: at 10% monthly churn, you lose 70% of your customer base in a year. Two flavors matter — gross churn (everyone who left) and net churn (after expansion revenue from existing customers). A net churn near zero or negative is the holy grail; it means existing customers grow faster than they leave. Reducing churn is usually higher-ROI than acquiring new customers because acquisition costs five times as much. AI agents can help you set up churn analysis, design save offers and cancel flows, and identify the churn signals in your product usage data.

Related agent skills