Subscriber churn: it’s one of the biggest threats to your business. Also known as “attrition rate” and is used to speak about the opposite of “retention”, churn 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. For example, if you had 100 customers and 10 left, you had a 10% churn rate (# loss / total # = churn).
In other words, it shows how many customers you’re losing throughout the course of your month, quarter, or year.
Trying to build a successful subscription business with high churn is like trying to fill a bucket up with water when it has holes in it.
Clearly, this is an important metric. At Subscription School, we’d even go as far to say it’s one of the most important metrics, right up there with conversion rate and profit margin. In an effort to bring more clarity to this concept and how you can influence it in your business, we’ve created the following infographic: