Churn Rate

The percentage of subscribers who discontinue their subscription in a given time period, either because they cancel their subscription or because it expires.

Churn is expressed by the formula:
(number of subscriptions expired during the period) / (number of subscriptions paid at the beginning of the period) * 100.

To expand your users base, growth rate (number of new customers) must exceed churn rate (number of lost customers). While it’s better to have a churn rate as low as possible, having subscriptions implies dealing with churning subscriptions so don’t panic if your Curn Rate is > 0%.

Churn allows you to identify lost subscribers in the same way that Trial Conversion Rate allows you to identify gained subscribers: both charts are indispensable for making long-term product forecasts.

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