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Subscriber churn refers to the percentage of subscribers who cancel or fail to renew their subscriptions within a specific period. It’s a key metric for subscription-based businesses to monitor customer retention and business health.
Churn directly affects your recurring revenue and long-term growth. High subscriber churn indicates dissatisfaction, pricing issues, or lack of product value, while low churn suggests strong customer loyalty and a well-optimized experience.
Subscriber churn is calculated by dividing the number of subscribers lost during a period by the number of subscribers at the start of that period.
Formula:
Churn Rate = (Lost Subscribers / Total Subscribers at Start) × 100
If you had 1,000 subscribers at the start of the month and lost 100, your subscriber churn rate would be 10%.
Segment churned users to identify patterns—such as billing failures vs. voluntary cancellations—and personalize win-back strategies accordingly.