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Subscriber (Customer) Churn and Churn Rate (Attrition Rate)

Subscriber Churn (also known as customer churn, churn rate or attrition rate) is the percentage metric that quantifies the total number of people who cancel during a given period, based on the amount of people subscribed during that period.

Calculate Customer Churn using this formula:

Customer Churn Rate = (Customers beginning of month – Customers end of month) / Customers beginning of month 

Monitoring customer churn will help you to understand how good you are at retaining customers and show what actions might result in a higher retention rate. Remember: the cost of acquiring new customers is 5-7 times more than retaining one.

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