Back to Glossary
Metrics
Churn
The rate at which customers stop buying or cancel. In subscription models it is measured directly; in non-subscription DTC it is inferred from lapsed purchase behaviour against a defined window.
Why it matters
For subscription businesses it is the number that decides whether acquisition compounds or leaks. Improving churn by a point is usually cheaper than improving CAC by the equivalent.
In practice
Separate voluntary from involuntary. A meaningful share of subscription churn is failed payments, which is a dunning problem, not a product one.
Related terms