Churn Rate (Churn)
Churn Rate measures what share of your customers you lost during a period.
Divide customers lost by customers at the start. That is Churn: how fast you lose what you already won. Care, because every point of churn raises the bar for acquisition just to stand still. Growth means nothing if the bucket leaks.
Signal Type
Metric Role
Metric Type
The Formula
Worked example
Benchmarks and interpretation
Where the number actually comes from
When to use it
Common Mistakes
In the REACT framework
Churn sits in the Talk phase. It is the leak in the momentum loop: acquisition running in reverse. It decides how much of your CAC ever pays back, which makes it a marketing metric, not just a customer success one.
Related metrics
Frequently Asked Questions
What is Churn Rate?
Churn Rate measures what share of your customers you lost during a period. It shows how much of your acquisition work is being cancelled from behind.
How do you calculate Churn Rate?
Use the formula: Churn Rate = (Customers Lost During Period ÷ Customers at Start of Period) × 100. Keep both inputs in the same reporting period and avoid mixing users, sessions, events, or customers unless the formula calls for it.
What data do you need for Churn?
You need starting customer base and lost customers, pulled from the relevant connected sources and computed for the same period.
What mistakes should you avoid with Churn?
Avoid mixing customer counts and revenue in one rate, hiding churn behind strong acquisition, and measuring only at renewal time when the leaving decision was made months earlier.
When should marketers use Churn?
Use Churn when weighing retention investment against acquisition spend. Rising churn means new budget is refilling a leaking bucket, and the cheaper move is usually plugging the leak.
What is a good Churn?
Good is relative to your model: monthly consumer subscriptions live with far higher churn than annual B2B contracts. Whatever the level, direction matters most, and any rise deserves a cause before a countermeasure.
Sources and methodology. Churn formula and definition derive from standard marketing analytics practice and platform reporting conventions. REACTIQ360 harmonises source data from CRM / billing / ecommerce, Customer lifecycle systems, Harmonisation layer and applies a consistent same-period computation methodology.
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