Churn Rate
The percentage of customers or subscribers who stop using a product or service during a given time period.
In Depth
Churn rate (also called attrition rate) measures the percentage of customers who discontinue their relationship with a company during a specific period. It is calculated as: (Customers Lost During Period / Customers at Start of Period) × 100. For subscription businesses, churn is one of the most critical metrics—it directly impacts revenue, growth, and customer lifetime value. Types of churn include voluntary churn (customer actively cancels), involuntary churn (payment failure), revenue churn (lost revenue, which can differ from logo churn), and negative churn (expansion revenue exceeds churned revenue). Reducing churn is often more cost-effective than acquiring new customers.
How AI for Database Helps
AI for Database calculates churn metrics from your customer data instantly—ask "What is our monthly churn rate by plan tier?" and get the answer.
Related Terms
Retention Analysis
The measurement of how many users continue to use a product or service over time.
Customer Lifetime Value
The total revenue a business can expect from a single customer account over the entire duration of their relationship.
Cohort Analysis
An analytical technique that groups users by a shared characteristic over time to identify behavioral patterns.
MRR
Monthly Recurring Revenue—the predictable total revenue generated from all active subscriptions in a month.
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