What is Churn rate?

What is Churn rate?

Churn rate measures departure: customers who cancel, stop buying or lapse, divided by the customers you started the period with. Ten losses from 200 customers in a month is a 5 percent monthly churn. Revenue churn weights the same idea by money lost instead of heads, which matters when accounts differ in size.

Churn compounds brutally in both directions. At 5 percent monthly churn you replace half your customer base every year just to stand still; at 2 percent the same growth efforts build on a stable base. It is also a lagging indicator of everything upstream: onboarding quality, support speed, product fit, pricing fairness.

Why it matters

Acquiring a replacement customer costs several times more than keeping an existing one, so churn silently sets the ceiling on growth and the floor on marketing spend. Watching churn by segment, which channels bring customers who stay, which cohorts lapse early, turns retention from a slogan into a diagnosis.

How it works in Medivot

Medivot helps you see and act on churn early: segment lapsing customers in the CRM by last activity or purchase, trigger win-back email automations when accounts go quiet, and follow up personally with high-value customers whose lifetime value justifies the call. Reports by source show which channels bring customers who stay.

Related terms

• Customer lifetime value (CLV): The total revenue you can reasonably expect from one customer over the whole relationship, used to decide what you can afford to spend winning them.
• Customer acquisition cost (CAC): Everything you spend on sales and marketing to win one new customer: ads, tools, time and people, divided by the customers they produced.
• Segmentation: Dividing your contacts into groups that share a trait, city, plan, behaviour, so each group gets the message that fits it.
• CRM (Customer Relationship Management): Customer relationship management: the practice, and the software, of keeping every interaction with every customer and prospect in one shared place.