What is Churn Rate?

Churn rate is the percentage of customers or subscribers who leave during a specific time period. If you run a membership site or subscription program, churn shows how well you’re holding onto the people you’ve already won.

Calculating Churn

Monthly Churn (%) = (Customers lost this month ÷ Customers at start of month) × 100

Track churn monthly (or even weekly for early-stage products) and pair it with [member retention](</glossary/member-retention>) and lifetime value metrics.

Types of Churn

Voluntary: Members cancel because they’re not getting value, financial priorities change, or they complete the transformation
Involuntary: Failed payments, expired cards, or billing issues—easier to fix with automation, reminders, and smart retries

Why Churn Matters

Affects revenue predictability and growth; high churn = running on a treadmill
Reduces customer lifetime value, making acquisition more expensive
Signals gaps in product, community, or onboarding experience
Impacts testimonials and referral loops across your value ladder

Reducing Churn

Onboard with intention: deliver quick wins, clear next steps, and personalized check-ins
Deliver consistent value: publish new content, host live sessions, and showcase member wins
Support engagement: use community engagement plans, accountability pods, and callout posts
Prevent billing failures: automated dunning emails, update-card flows, and alternative payment methods
Collect feedback: cancellation surveys, quarterly interviews, and sentiment tracking inside your community platform

Benchmarking

Sub-5% monthly churn is excellent for premium memberships
7–10% monthly churn is common for early-stage communities or low-ticket products
Track cohorts separately—retention often improves when members graduate into advanced programs or high-ticket experiences

Churn Rate