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Your Churn Rate is one of the key indicators of the health of your subscription business. Reducing your rate of churn impacts your business outcomes more than any other single factor including your rate of subscriber acquisition. In fact, a 1% reduction in churn will have a greater impact on your revenue than a 5% increase in your acquisition rate
Cleeng measures your retention performance using the 'adjusted churn' methodology. This is the most effective method for measuring churn in high acquisition businesses like subscription services.
Measurement: (Customers churned in period/((Customers at start of period + Customers at end of period)/2)*100
Your churn rate is closely connected to your subscriber lifecycle. For example, a monthly retention rate of 80% implies a subscriber lifecycle of 5 months. Increasing that retention rate by 10% increases the average subscriber lifecycle to 10 months, and doubles the lifetime value of your subscribers.