Churn Rate
dtcCustomer Churn Rate
Definition
The percentage of customers who stop using your product or cancel their subscription in a given period.
How to Calculate Churn Rate
(Customers Lost in Period ÷ Total Customers at Start) × 100
Example
Scenario: Lost 50 customers from starting base of 1,000 customers
Calculation: (50 ÷ 1,000) × 100 = 5% monthly churn rate
What's a Good Churn Rate?
2-8% monthly churn for most subscription businesses, varies by price point and category
Common Mistakes
- Not segmenting churn by customer acquisition channel
- Focusing only on churn rate without considering customer quality
💡 Expert Tip
Track churn by cohort and acquisition channel. Customers from different sources often have dramatically different retention patterns.
— Based on $100M+ in managed ad spend
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By Kristijan Arapov • Based on $100M+ in managed ad spend • Updated 2026