Lead Generation Data Enrichment Sales Reports Statistics Sign up

Churn Rate

Churn Rate is the percentage of customers or subscribers who stop doing business with a company during a given period of time. In B2B SaaS and subscription-based models, tracking churn is critical for understanding customer retention, forecasting revenue, and identifying areas for product and service improvement.

What Is Churn Rate?

Churn rate (also known as attrition rate) tells you how many customers or accounts you’ve lost relative to your total base. It can be calculated monthly, quarterly, or annually and is typically expressed as a percentage.

There are two common types:

  • 🔁 Customer Churn Rate – % of customers lost
  • 💸 Revenue Churn Rate – % of revenue lost (especially important for accounts with varying contract sizes)

Churn Rate Formula

Customer Churn Rate = (Lost Customers ÷ Total Customers at Start of Period) × 100

Example:
If you started the month with 1,000 customers and lost 40, your churn rate = (40 / 1000) × 100 = 4%

Revenue Churn Rate = (MRR Lost ÷ MRR at Start) × 100

Why Churn Rate Matters in B2B

  • 📉 Directly Impacts CLTV – Higher churn shortens lifetime value
  • 🧠 Signals Product or Experience Issues – Reveals dissatisfaction
  • 📊 Influences Forecasting – Affects net revenue growth
  • 🔁 Guides Retention Strategy – Helps you prioritize at-risk customers
  • 🚫 Increases CAC Pressure – More churn means more replacement cost

Causes of High Churn

How to Reduce Churn Rate

  1. ✅ Improve onboarding flows and early success milestones
  2. 🧠 Use product usage data to identify churn risks
  3. 📬 Automate renewal reminders and win-back campaigns
  4. 🔁 Offer flexible plans or incentives for long-term commitment
  5. 🤝 Conduct exit interviews to understand why users leave
  6. 📊 Use predictive analytics to detect at-risk accounts

Churn Rate with CUFinder

CUFinder helps reduce churn by enabling B2B companies to target high-fit leads and maintain CRM hygiene. By starting with accurate, enriched data and filtering by firmographic fit, your retention strategies are built on a foundation of high-quality customers more likely to stick around.

Cited Sources

Related Terms