Churn Analysis Guide: How to Measure and Reduce Customer Churn

Churn rate is one of the most important metrics for subscription and recurring revenue businesses. High churn directly impacts valuation, as it reduces lifetime value, increases acquisition costs, and signals product-market fit issues. This guide covers: types of churn (voluntary, involuntary, revenue churn, customer churn), how to calculate churn (monthly, annual, cohort-based), industry benchmarks by sector (SaaS, newsletters, apps), factors that cause churn (product, pricing, competition, service), strategies to reduce churn (onboarding, engagement, retention, win-back), how to analyze churn (cohort analysis, segmentation, predictive models), and how churn impacts valuation (multiples, risk assessment, buyer concerns). We include calculation templates, analysis frameworks, reduction playbooks, and case studies from businesses that successfully reduced churn.