A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.

Churn Rate

Churn Rate

Churn rate is the rate at which customers stop doing business with an entity. It can be expressed as the percentage of users that discontinue their subscriptions with a given time period. It can also be expressed as the rate at which employees leave a company. To experience growth in a company, the growth rate should be higher than the churn rate.


  • Provide clarity on the quality of the business - The churn rate of a company indicates how well it is able to retain its customers which reflects the quality of service provided by the company.
  • Indicates the likes and dislikes of the customers - A higher churn rate indicates that the customers might not be liking your product or service. By getting clear stats you can re-work the strategy and quality of products.
  • Possible fixes - As you dig deep into why your customers are leaving, you can implement better ways to fix the business problems and retain your customers.

What causes churn?

Now there are a variety of reasons that might trigger the user to end the subscription with your site. But some common sources of churn include -

  • Lack of features
  • High cost
  • Poor onboarding experience
  • Poor user experience
  • Competitors offering better products
  • Poor product or service

Tips to decrease the churn rate

  • Leverage push notifications - Sending notifications to the users every now and then helps to keep them interested in the content which leads to better engagement and repeated visits.
  • Personalize - Personalizing the experience for each and every user makes them feel as if you are talking to them. You can customize the interactions using their first name and preferences.
  • Make use of the in-app messages - Send the right message at exactly the right time and help the new users to explore all your features.
  • Optimize the user experience - Make their experience worth a while by using catchy content, videos, and great quality in the case of products. Make everything look attractive and interesting.
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