{"id":3259,"date":"2026-01-23T04:33:28","date_gmt":"2026-01-23T10:33:28","guid":{"rendered":"https:\/\/www.zoomshift.com\/blog\/?p=3259"},"modified":"2026-03-29T06:33:36","modified_gmt":"2026-03-29T11:33:36","slug":"churn-rate-formula","status":"publish","type":"post","link":"https:\/\/www.zoomshift.com\/blog\/churn-rate-formula\/","title":{"rendered":"Churn Rate Formula"},"content":{"rendered":"

<\/span>What Is Churn Rate?<\/span><\/h2>\n

Companies spend a lot of time and money attracting new customers. An equally important task is finding out how many customers you\u2019re losing each year. That\u2019s what churn rate means. It\u2019s the rate at which you\u2019re losing customers over a period of time.<\/p>\n

<\/span>What Is The Churn Rate Formula?<\/span><\/h2>\n

Knowing your churn rate helps guide your product pricing and may change your entire product and product marketing strategy. The churn rate formula calculates what percentage of customers your business loses over a specific time period.<\/p>\n

Churn equals the number of customers lost over a time period divided by the number of active customers at the start of that time period.<\/p>\n

Example:<\/strong><\/p>\n

Let\u2019s say Acme Corporation has 70,000 customers at the start of 2026. By the end of 2026, they\u2019ve lost 2,000 customers. You\u2019d take 2,000 divided by 70,000 to get 0.28, which equals about 3%, as their churn rate.<\/p>\n

It\u2019s important to note that while 2,000 customers lost may seem like a little or a lot, it\u2019s not providing the full picture. The churn rate formula only looks at the number of customers lost<\/em>. In that same time period, Acme Corporation could have gained 10,000 more customers.<\/p>\n

<\/span>Tips to Reduce Churn Rate<\/span><\/h2>\n

It\u2019s often much more expensive to acquire a new customer than to keep a current customer. With that in mind, here are a few tips to reduce your churn rate:<\/p>\n

Segmentation is key<\/h3>\n

It’s important to know when your customer signed up, what plan they were on, whether they went through a special support program, or if there was anything else that stood out about their customer experience. Those insights make it easy to slice and dice the data to see if there are certain customer trends surrounding churn.<\/p>\n

Iron out your cancellation process<\/h3>\n

There\u2019s something to say about making the cancellation process easy, but it also doesn\u2019t give you a chance to save the deal or learn what you can do better in the future. Requiring a cancellation questionnaire or a short call with an account executive could be the best thing you do to reduce future churn.<\/p>\n

Create sticky features<\/h3>\n

If your product is easy to switch away from, then churn is naturally going to be higher. One way to combat that is with value-added features that facilitate more commitment from your customers. It could be custom workflows, add-on services, or customer support that\u2019s hard to replicate in the industry.<\/p>\n

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******<\/p>\n

See our full list of over 50 Small Business Terms\u00a0here<\/a>.\u00a0<\/em><\/p>\n<\/div>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

What Is Churn Rate? Companies spend a lot of time and money attracting new customers. An equally important task is finding out how many customers you\u2019re losing each year. That\u2019s what churn rate means. It\u2019s the rate at which you\u2019re losing customers over a period of time. What Is The Churn Rate Formula? Knowing your […]<\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false},"categories":[11],"tags":[],"yoast_head":"\nChurn Rate Formula<\/title>\n<meta name=\"description\" content=\"Learn about customer churn, the rate at which customers are lost over a specific time period, divided by the number of active customers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zoomshift.com\/blog\/churn-rate-formula\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Churn Rate Formula\" \/>\n<meta property=\"og:description\" content=\"Learn about customer churn, the rate at which customers are lost over a specific time period, divided by the number of active customers.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zoomshift.com\/blog\/churn-rate-formula\/\" \/>\n<meta property=\"og:site_name\" content=\"Zoomshift\" \/>\n<meta property=\"article:published_time\" content=\"2026-01-23T10:33:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-29T11:33:36+00:00\" \/>\n<meta name=\"author\" content=\"ZoomShift\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ZoomShift\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/churn-rate-formula\/\",\"url\":\"https:\/\/www.zoomshift.com\/blog\/churn-rate-formula\/\",\"name\":\"Churn Rate Formula\",\"isPartOf\":{\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#website\"},\"datePublished\":\"2026-01-23T10:33:28+00:00\",\"dateModified\":\"2026-03-29T11:33:36+00:00\",\"author\":{\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#\/schema\/person\/9ba35c556ffdf9d8dab06992b17a4b0d\"},\"description\":\"Learn about customer churn, the rate at which customers are lost over a specific time period, divided by the number of active customers.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.zoomshift.com\/blog\/churn-rate-formula\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.zoomshift.com\/blog\/churn-rate-formula\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/churn-rate-formula\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.zoomshift.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Churn Rate Formula\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#website\",\"url\":\"https:\/\/www.zoomshift.com\/blog\/\",\"name\":\"Zoomshift\",\"description\":\"SMB Management Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.zoomshift.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#\/schema\/person\/9ba35c556ffdf9d8dab06992b17a4b0d\",\"name\":\"ZoomShift\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.zoomshift.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/05af010fb3485fa8095793cfff89a5e6?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/05af010fb3485fa8095793cfff89a5e6?s=96&d=mm&r=g\",\"caption\":\"ZoomShift\"},\"description\":\"The leading scheduling software designed for hourly employees. 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