{"id":39307,"date":"2021-11-30T06:16:16","date_gmt":"2021-11-30T06:16:16","guid":{"rendered":"https:\/\/act.com\/?page_id=39307"},"modified":"2023-01-04T10:20:58","modified_gmt":"2023-01-04T17:20:58","slug":"churn-rate","status":"publish","type":"page","link":"https:\/\/products.act.com\/en-gb\/churn-rate\/","title":{"rendered":"Churn rate"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"39307\" class=\"elementor elementor-39307\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7d6e1175 topSctGlb elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7d6e1175\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;gradient&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2c57c3d9\" data-id=\"2c57c3d9\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-496f775f elementor-widget elementor-widget-heading\" data-id=\"496f775f\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h1 class=\"elementor-heading-title elementor-size-default\">What is Customer Churn Rate?<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-40c18f00 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"40c18f00\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-65670b92\" data-id=\"65670b92\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-261bd7c7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"261bd7c7\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-3a7799fc\" data-id=\"3a7799fc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-75069a7e elementor-widget elementor-widget-text-editor\" data-id=\"75069a7e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<div class=\"sfContentBlock\"><p><strong>The longer your business can keep customers for, the more revenue you will earn per customer.<\/strong>\u00a0In order to know how effectively you are keeping customers, you need to know your customer churn rate.<\/p><p>In this article, we\u2019ll look at what churn rate is, how you can measure it, and what a good churn rate is.<\/p><h4><strong>Customer Churn Rate Definition<\/strong><\/h4><p>Customer churn rate is the percentage of customers who stop using your product or service over a defined time period. It is the opposite of\u00a0<a href=\"https:\/\/www.act.com\/en-gb\/what-is-customer-retention\/\">customer retention rate<\/a>, which shows how many customers stay with you in a given period.<\/p><p>If you have a low churn rate, it suggests customers are happy with your product and find enough value in it to continue using it.<\/p><p>A high churn rate suggests customers are not getting the value they expected to get from your product. This can point to issues with your product, service, or sales strategy that may otherwise be hidden by metrics like revenue growth or total number of users.<\/p><p>Churn rate is an especially useful measurement for products sold on a subscription basis. For example, SaaS products, media providers, gyms, or utility contracts. The longer businesses in these industries can keep customers for, the more revenue they will bring in.<\/p><h4><strong>How to Measure Customer Churn Rate?<\/strong><\/h4><p>Measuring churn rate is easy to do. You first need to define the time period you want to measure churn rate over. Commonly, this is done per month, quarter, or year.<\/p><p>Next, tally the total number of customers you had at the start of this period and the number of customers that left. You then divide the second number by the first to get the churn rate.<\/p><p>For example, if you had 1,000 customers at the start of the month and lost 50, you\u2019d divide 50 by 1,000 to get a churn rate of 5 per cent.<\/p><h4><strong>What is a Good Churn Rate?<\/strong><\/h4><p>Deciding what constitutes a good churn rate is difficult. Studies on the subject have reported average annual churn rates of anything from under\u00a0<a href=\"https:\/\/www.cobloom.com\/blog\/churn-rate-how-high-is-too-high\" target=\"_blank\" rel=\"noopener\">five per cent to over sixty per cent<\/a>. Because of this, what defines a good churn rate for your business will depend on several factors.<\/p><p>First up is how much it costs to acquire customers. If your average cost per acquisition is \u00a360 and your monthly subscription is \u00a320, you need customers to stay for an average of three months, not including other costs, in order to break even.<\/p><p>On the other hand, if you make a profit as soon as a customer signs up, it\u2019s not quite as devastating if they leave after a month.<\/p><p>Also,\u00a0<strong>different industries<\/strong>\u00a0will have different average churn rates. Businesses that provide key B2B services like payroll solutions are likely to have lower rates of churn than B2C products like Netflix. This is because it isn\u2019t as easy for businesses to switch to another payroll provider as it is for an individual to switch from Netflix to Amazon Prime.<\/p><p>The\u00a0<strong>length of your billing cycles<\/strong>\u00a0will also affect your rate of churn. Companies that bill by month will likely have a larger monthly churn rate than those that bill by quarter or by year because customers have fewer chances to leave the service.<\/p><p>The\u00a0<strong>tactics<\/strong>\u00a0you use to get customers to sign up may also increase your rate of churn. For example, free trials or first-month money-back guarantees may be good for increasing your customer base, but they might result in a higher churn rate.<\/p><h4><strong>Final Thoughts<\/strong><\/h4><p>Measuring your churn rate over time can tell you whether the steps you are taking to increase\u00a0<a href=\"https:\/\/www.act.com\/en-gb\/customer-loyalty-definition\/\">customer loyalty<\/a>\u00a0are paying off. While some rate of churn is inevitable, reducing this number by even a small amount can result in a serious profit boost for your business.<\/p><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5610006 elementor-widget elementor-widget-text-editor\" data-id=\"5610006\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h4><strong>Learn more about Customer Retention:<\/strong><\/h4><ul><li><a href=\"https:\/\/www.act.com\/en-gb\/how-to-calculate-customer-retention\/\">How to calculate your customer retention rate<\/a><\/li><li><a href=\"https:\/\/www.act.com\/en-gb\/customer-retention-strategies\/\">5 examples of simple customer retention strategies<\/a><\/li><li><a href=\"https:\/\/www.act.com\/en-gb\/customer-loyalty-definition\/\">What is customer loyalty?<\/a><\/li><li><a href=\"https:\/\/www.act.com\/en-gb\/customer-loyalty-programs\/\">How to build a powerful customer loyalty program<\/a><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1454de3b elementor-widget elementor-widget-image\" data-id=\"1454de3b\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.act.com\/en-gb\/guides\/marketing-automation-ebook\/\">\n\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"241\" src=\"https:\/\/products.act.com\/wp-content\/uploads\/2021\/08\/marketing-automation-ebook-bannerd77493e796e1633a9d88ff00001e67f5.png\" class=\"attachment-large size-large wp-image-26835\" alt=\"Act! CRM download button for marketing automation guide\" srcset=\"https:\/\/products.act.com\/wp-content\/uploads\/2021\/08\/marketing-automation-ebook-bannerd77493e796e1633a9d88ff00001e67f5.png 1024w, https:\/\/products.act.com\/wp-content\/uploads\/2021\/08\/marketing-automation-ebook-bannerd77493e796e1633a9d88ff00001e67f5-300x71.png 300w, https:\/\/products.act.com\/wp-content\/uploads\/2021\/08\/marketing-automation-ebook-bannerd77493e796e1633a9d88ff00001e67f5-768x181.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-64566df1 bottomMenu elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"64566df1\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4beb0a1d\" data-id=\"4beb0a1d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-52a6d7dc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"52a6d7dc\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-50d4be1a\" data-id=\"50d4be1a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7974d664 elementor-widget elementor-widget-heading\" data-id=\"7974d664\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Looking for ways to retain your customers?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-341428b2\" data-id=\"341428b2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7cc45cf2 elementor-widget elementor-widget-text-editor\" data-id=\"7cc45cf2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Try Act! Growth Suite free for 14 days.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-3c69e237\" data-id=\"3c69e237\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-92234dd elementor-align-center elementor-widget elementor-widget-button\" data-id=\"92234dd\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/buy.act.com\/en-gb\/trial\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Try it free<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-79931c8e\" data-id=\"79931c8e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e5346c3 bottom_menu_close elementor-view-default elementor-widget elementor-widget-icon\" data-id=\"e5346c3\" data-element_type=\"widget\" data-widget_type=\"icon.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-icon-wrapper\">\n\t\t\t<div class=\"elementor-icon\">\n\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-12425eda elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"12425eda\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-33c15cea\" data-id=\"33c15cea\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4a66dbad elementor-widget elementor-widget-html\" data-id=\"4a66dbad\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<script src=\"https:\/\/ajax.googleapis.com\/ajax\/libs\/jquery\/3.5.1\/jquery.min.js\"><\/script>\r\n<script>\r\n$(document).scroll(function () {\r\n    var y = $(this).scrollTop();\r\n    if (y > 200) {\r\n        $('.bottomMenu, .bottom_menu_close').fadeIn();\r\n    } else {\r\n        $('.bottomMenu, .bottom_menu_close').fadeOut();\r\n    }\r\n\r\n});\r\n$(document).ready(function(){\r\n    $(\".bottom_menu_close\").click(function(){\r\n$(\".bottomMenu\").remove();\r\n});\r\n});\r\n\r\n<\/script>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2d2fb4c8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2d2fb4c8\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;gradient&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5ad6beb7\" data-id=\"5ad6beb7\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1454399c elementor-widget elementor-widget-heading\" data-id=\"1454399c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Big results. Small investment.<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7d6f9dc1 elementor-widget elementor-widget-text-editor\" data-id=\"7d6f9dc1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p class=\"lead\">Ready to take the first step?<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5f86d7b5 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"5f86d7b5\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.act.com\/en-gb\/trial\/act\/\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Try it free<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>What is Customer Churn Rate? The longer your business can keep customers for, the more revenue you will earn per customer.\u00a0In order to know how effectively you are keeping customers, you need to know your customer churn rate. In this article, we\u2019ll look at what churn rate is, how you can measure it, and what [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[],"tags":[],"folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v22.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is customer churn rate<\/title>\n<meta name=\"description\" content=\"In order to know how effectively you are keeping customers, you need to know your customer churn rate. 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