Metrics
Churn Rate
The percentage of customers who stop buying over a given period.
Definition
Churn is the enemy of lifetime value. For subscription and repeat-purchase businesses, reducing churn is often cheaper and more profitable than acquiring new customers.
Formula
Churn Rate = (Customers lost ÷ Customers at start of period) × 100
Example
Starting a month with 500 subscribers and losing 25 is a 5% monthly churn rate.