Churn

Definition

Churn (or churn rate) is the percentage of subscribers who cancel their subscription within a given period, typically measured monthly. It is calculated as (cancelled subscribers / total subscribers at the start of the period) × 100. For subscription apps, monthly churn rates of 5-10% are common for consumer apps, while B2B apps often see 2-5%.

Churn is the enemy of compounding subscription growth. Even a small reduction in churn significantly increases lifetime value (LTV) and long-term revenue. Common churn reduction strategies include win-back offers, save offers at cancellation, and engagement-triggered retention campaigns.

Examples

• An app starts the month with 1,000 subscribers and 80 cancel. Monthly churn = 8%. At this rate, half the subscriber base is replaced roughly every 9 months.
• Voluntary churn (user-initiated cancellation) is distinct from involuntary churn (failed payment). Involuntary churn can often be recovered with grace periods and payment retry logic.
• Tierux supports win-back offers configured directly in the paywall — reducing churn by presenting a discounted re-subscribe option to lapsed users.