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Sales · Definition

Churn Rate

The rate at which customers stop buying over a period.

Churn rate is the share of customers active at the start of a period who are gone by the end. For non-subscription businesses it is usually defined as no purchase within a set window.

It is the quiet counterweight to new business. A team winning ten customers a month while losing eight is working hard to stand still, and the lost eight are usually cheaper to recover than to replace.

How it is calculated

Churn rate = Customers lost in period ÷ Customers at start of period

Weight by revenue as well as count — losing one large account is not one unit of churn.

Also called

  • attrition rate

Churn Rate is not just a definition here

Sales runs on this vocabulary every day in AWRA OpsHub — 14 of our 257 glossary terms describe things the platform actually does.