GITNUX MARKETDATA REPORT 2023
Must-Know Churn Metrics
Highlights: The Most Important Churn Metrics
- 1. Churn Rate
- 2. Revenue Churn
- 3. Gross Churn
- 4. Net Churn
- 5. Customer Lifetime Value (CLTV)
- 7. Average Revenue Per Churned Customer
- 8. Retention Rate
- 9. Voluntary vs. Involuntary Churn
- 10. Churn by Cohort
- 11. Time to Churn
Table of Contents
Churn Metrics: Our Guide
Understanding churn metrics is crucial for any business wanting to maintain customer satisfaction and drive growth. This blog post will delve into the most important churn metrics that every business professional must be aware of. From customer retention rate to churn rate, learn how to measure, analyze, and use these figures to boost your company’s performance.
Churn rate: % of customers canceling subscriptions or purchases. Crucial for recurring revenue and subscriptions.
Revenue churn: Lost revenue from customer churn, accounting for recurring revenue, upsells, and cross-sells. It shows churn’s bottom-line impact.
Gross churn: Lost revenue from churned customers, excluding upsells/cross-sells. Shows churn magnitude without mitigation.
Net churn: Gross churn minus expansion revenue. Comprehensive view of revenue considering losses and growth.
Customer Lifetime Value
CLTV: Revenue from one customer over time, considering revenue, churn, and acquisition costs. Shows long-term value and churn impact.
Churned MRR: Lost revenue from churned customers in a month. Helps track churn trends and retention efforts.
Average Revenue Per Churned Customer
Average pre-churn customer revenue: Identifies retention focus areas via historical tracking.
Retention rate: % of customers using a product/service beyond the initial subscription. High rates indicate satisfaction and value.
Voluntary Vs. Involuntary Churn
Voluntary churn: Customers cancel by choice. Involuntary churn: Circumstances beyond control. Identifying these helps retention prioritization.
Churn By Cohort
Churn by cohort: Analyzing churn rates in customer groups with shared characteristics or sign-up times. Informs targeted retention strategies.
Time To Churn
Time to churn: Avg. time before customer leaves. Insights into engagement and informs improvements.
Frequently Asked Questions
What are churn metrics and why are they important?
What is the difference between customer churn and revenue churn?
How can businesses calculate churn rate?
What are some effective strategies for reducing churn rates?
Can churn metrics aid in identifying patterns and trends in customer behavior?
How we write these articles
We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly. See our Editorial Guidelines.