Measures the percentage of customers who stop doing business with you over a given period.

What it Measures ?

How many customers stop using your service.

Relevant StakeHolders 

Retention Teams, CX Analysts

In-depth Use Case / Real-world Example

Churn Rate is calculated as: (Number of Customers Lost ÷ Total Customers at the Start of Period) × 100. In a B2B manufacturing environment, churn may occur when clients stop purchasing spare parts, don’t renew annual maintenance contracts, or switch to a competing supplier. For example, if you begin the quarter with 100 enterprise clients and lose 5 by the end, your churn rate is 5%. High churn can significantly impact revenue growth and operational planning, especially for manufacturers who rely on long-term, high-value accounts. Churn may result from product quality issues, poor service support, slow lead times, or better pricing from competitors. Monitoring churn by segment (industry, region, product line) can reveal root causes and help tailor retention strategies. For instance, if small manufacturers are churning due to post-sale support gaps, a dedicated support manager or customer success program could help. Alternatively, if large enterprise clients are leaving after the first year, onboarding improvements or contract renewal workflows may be necessary. Reducing churn improves lifetime value (LTV), stabilizes cash flows, and increases upsell/cross-sell opportunities. Additionally, churn insights can be looped back into marketing to refine messaging, improve targeting, and enhance customer journey mapping. Proactive churn reduction often involves predictive modeling, early-warning indicators (e.g., inactivity), and personalized retention campaigns to re-engage at-risk customers.