Ad Math: What is Churn Rate? | - Digital Advertising Agency – Marketing Strategy | IQ Agency Ad Math: What is Churn Rate? |
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  • 04.19.17

Ad Math: What is Churn Rate?

In marketing, we spend a lot of time trying to attract new customers, but it’s also important to know how many customers you may be losing. So, in this video, we’re going to discuss how to figure out your churn rate.

Unfortunately, not all customers are loyal. Sometimes, no matter how hard you try, some customers decide to move on to another company and its products (see our post on the value of email subscribers)Knowing how many customers you lose to the competition vs. how many you retain will help inform your marketing strategy and may even guide your product strategy.

Your churn rate refers to the percentage of customer loss a business experiences over a specific period of time and the way to figure that out is pretty straightforward:


Depending on your product and industry, knowing your churn rate can help you understand why customers are leaving so that you can reduce that number in the future through revised marketing or product plans. The reason it’s important to identify and address these issues is because it’s often much more expensive to acquire a new customer than it is to keep a current customer happy.

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