GLOSSARY
Churn Rate
What is Churn Rate?
DefinitionChurn rate is the percentage of customers who cancel or lapse in a given period - the inverse of retention. Subscription-industry benchmark data puts typical supplement-brand churn at 5–8% monthly, with 20–30% first-month churn being normal.
Formula
Churn rate = Customers lost in period ÷ Customers at start of periodIn subscription health, churn is the hidden lever on LTV: shaving first-month churn from 30% to 20% can lift lifetime value more than any CAC cut. The math is unforgiving because average subscriber lifespan is roughly 1 ÷ monthly churn: at 8% monthly churn a subscriber lasts about 12.5 months, while cutting churn to 5% stretches that to 20 months, a 60% LTV lift with zero change in CAC. Separate involuntary churn (failed rebills) from voluntary churn; failed payment retries alone drive a large share of supplement cancellations and are fixable with dunning.
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