{"id":115725,"date":"2023-07-19T02:17:36","date_gmt":"2023-07-19T02:17:36","guid":{"rendered":"https:\/\/userpilot.com\/blog\/customer-churn-rate\/"},"modified":"2026-02-16T14:25:47","modified_gmt":"2026-02-16T14:25:47","slug":"customer-churn-rate","status":"publish","type":"post","link":"https:\/\/userpilot.com\/blog\/customer-churn-rate\/","title":{"rendered":"Customer Churn Rate: How to Calculate and Improve Churn"},"content":{"rendered":"<p>Tracking your customer churn rate will help you keep tabs on business growth.<\/p>\n<p>You will have data sets for analyzing your churn\/retention history, which will better position you to make intelligent business decisions.<\/p>\n<p>This article shows you various ways to calculate churn, make sense of the data, and create proactive solutions to <a href=\"https:\/\/userpilot.com\/solutions\/customer-retention-software\" target=\"_blank\" rel=\"noopener noreferrer\">retain more customers<\/a>.<\/p>\n<h2 id=\"99dmm\"><strong>What is customer churn?<\/strong><\/h2>\n<p>Customer churn is the rate at which customers discontinue their subscription or stop using a particular product or service.<\/p>\n<p>Churn could happen for various reasons, from<a href=\"https:\/\/userpilot.com\/blog\/customer-dissatisfaction\/\" target=\"_blank\" rel=\"noopener noreferrer\"> customer dissatisfaction<\/a> with your brand to changing business needs that make them switch to competitors (more on that later).<\/p>\n<h2 id=\"395kg\"><strong>Types of churn rates you should calculate<\/strong><\/h2>\n<p>Churn is quite broad. Differentiating the different types will help you track and reduce attrition with ease.<\/p>\n<p>Let&#8217;s go over the most common types of churn:<\/p>\n<ul>\n<li><strong>Customer churn rate<\/strong>: this metric shows how many customers stopped using your products or services during a certain period.<\/li>\n<li><a href=\"https:\/\/userpilot.com\/blog\/revenue-churn-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Revenue churn rate:<\/strong> <\/a>a measure of the recurring revenue lost by your business through subscription cancellations and downgrades.<\/li>\n<li><strong><a href=\"https:\/\/userpilot.com\/blog\/involuntary-churn\/\" target=\"_blank\" rel=\"noopener noreferrer\">Involuntary churn rate:<\/a><\/strong> customer attrition caused by any factor that isn&#8217;t the customer&#8217;s choice. For example, it\u2019s involuntary churn when customers experience payment failures and can\u2019t upgrade or when a bug in your system mistakenly flags a customer&#8217;s account for cancellation.<\/li>\n<\/ul>\n<p><!--ARCADE EMBED START--><\/p>\n<div style=\"position: relative; padding-bottom: calc(56.8027% + 41px); height: 0px; width: 100%;\"><iframe loading=\"lazy\" src=\"https:\/\/sw11.userpilot.com\/WkWUNQj7WT4QoqhLSQbE?embed&#038;embed_mobile=tab&#038;embed_desktop=inline&#038;show_copy_link=true\" title=\"Churn Prevention\" frameborder=\"0\" loading=\"lazy\" webkitallowfullscreen mozallowfullscreen allowfullscreen allow=\"clipboard-write\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; color-scheme: light;\" ><\/iframe><\/div>\n<p><!--ARCADE EMBED END--><\/p>\n<h2 id=\"iovm\"><strong>How to calculate the customer churn rate?<\/strong><\/h2>\n<p>To <a href=\"https:\/\/userpilot.com\/blog\/saas-churn-calculation\/\" target=\"_blank\" rel=\"noopener noreferrer\">calculate customer churn<\/a>, use this simple formula: Divide the number of users lost during the period of interest by the number of users you had at the start of the period. Multiply the result by 100.<\/p>\n<p>For example, imagine you started the year with 700 customers but somehow lost 50 by July. Your churn rate is 50\/700 X 100 = 7%<\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/formula-for-customer-churn-rate_0037207e344deeb45bad729dc8d4fb30_800.png 1x, https:\/\/images.storychief.com\/account_6827\/formula-for-customer-churn-rate_0037207e344deeb45bad729dc8d4fb30_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/formula-for-customer-churn-rate_0037207e344deeb45bad729dc8d4fb30_800.png 1x, https:\/\/images.storychief.com\/account_6827\/formula-for-customer-churn-rate_0037207e344deeb45bad729dc8d4fb30_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/formula-for-customer-churn-rate_0037207e344deeb45bad729dc8d4fb30_800.png\" alt=\"Formula-for-customer-churn-rate\" \/><\/picture><figcaption>Formula for calculating churn rate.<\/figcaption><\/figure>\n<h2 id=\"1cedq\"><strong>How to calculate the revenue churn rate?<\/strong><\/h2>\n<p>To calculate<a href=\"https:\/\/userpilot.com\/blog\/revenue-churn-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\"> revenue churn<\/a>, divide the net revenue lost from existing customers in a given period by the total revenue at the beginning of the period.<\/p>\n<p>For example, if your March loss from downgrades is $4,000 while the MRR is $80,000, your <a href=\"https:\/\/userpilot.com\/blog\/revenue-churn-saas\/\">revenue churn<\/a> is 0.05.<\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/saas-churn-calculation_ea7fb11756f2d850e1541a2ae8ffe36f_800.png 1x, https:\/\/images.storychief.com\/account_6827\/saas-churn-calculation_ea7fb11756f2d850e1541a2ae8ffe36f_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/saas-churn-calculation_ea7fb11756f2d850e1541a2ae8ffe36f_800.png 1x, https:\/\/images.storychief.com\/account_6827\/saas-churn-calculation_ea7fb11756f2d850e1541a2ae8ffe36f_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/saas-churn-calculation_ea7fb11756f2d850e1541a2ae8ffe36f_800.png\" alt=\"saas-churn-calculation\" \/><\/picture><figcaption>Revenue churn calculation.<\/figcaption><\/figure>\n<p>You can calculate your revenue churn monthly or annually.<\/p>\n<p>Having both numbers provides a more nuanced and complete picture of <a href=\"https:\/\/userpilot.com\/blog\/cohort-retention-analysis\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer retention.<\/a> It also helps in identifying short-term trends, setting long-term goals, benchmarking performance, and making critical decisions to improve customer retention.<\/p>\n<h3 id=\"7mmlk\"><strong>Monthly churn rate formula<\/strong><\/h3>\n<p>Your monthly churn rate refers to the percentage of customers lost over a month.<\/p>\n<p>How to calculate: (number of customers you had at the beginning of the month) &#8211; (number of customers you had at the end of the month) \/ number of customers you had at the beginning of the month X 100.<\/p>\n<p>Monthly tracking comes with several benefits. For instance, you can use the data for <a href=\"https:\/\/userpilot.com\/blog\/cohort-retention-analysis\/\" target=\"_blank\" rel=\"noopener noreferrer\">cohort and retention analysis<\/a> or to create a churn<a href=\"https:\/\/userpilot.com\/blog\/predict-churn\/\" target=\"_blank\" rel=\"noopener noreferrer\"> prediction model<\/a> that tells you which months of the year customers are more likely to churn.<\/p>\n<h3 id=\"9efba\"><strong>Annual churn rate formula<\/strong><\/h3>\n<p>The annual churn rate is the percentage of customers you lose in a year. Similar to the monthly churn rate, calculate this metric by dividing the number of customers lost in a year by the number you had at the start of the year. Multiply the figure by 100.<\/p>\n<p>Annual churn rates will flatten out the influence of seasonality or marketing campaigns on churn so you can see your business\u2019s long-term story and <a href=\"https:\/\/userpilot.com\/blog\/b2b-saas-funnel-conversion-benchmarks\/\" target=\"_blank\" rel=\"noopener noreferrer\">set benchmarks<\/a> for yourself.<\/p>\n<h2 id=\"ci3d8\"><strong>How to use the adjusted churn rate formula?<\/strong><\/h2>\n<p>Fast-growing companies might struggle with a churn rate formula that only accounts for lost customers.<\/p>\n<p>A more complex formula showing <a href=\"https:\/\/userpilot.com\/blog\/churned-user\/\" target=\"_blank\" rel=\"noopener noreferrer\">churned customers <\/a>while also including the users added in that period will provide more accurate data.<\/p>\n<p>Use the following formula to get a better picture of your churn rate:<\/p>\n<p><strong>(Y \/ [ (W+X) \/ 2 ] ) x 100 = Z<\/strong><\/p>\n<ul>\n<li>W = Number of users at the start of the period<\/li>\n<li>X = Number of users at the end of the period<\/li>\n<li>Y = Number of churned customers during that period<\/li>\n<li>Z = Churn rate percentage<\/li>\n<\/ul>\n<h2 id=\"3fhfp\"><strong>What is a good churn rate: SaaS customer churn benchmarks<\/strong><\/h2>\n<p>The <a href=\"https:\/\/userpilot.com\/blog\/good-churn-rate-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">ideal churn rate<\/a> varies, depending on your growth stage.<\/p>\n<p>For established SaaS companies, the average is <a href=\"https:\/\/sixteenventures.com\/saas-churn-rate\" target=\"_blank\" rel=\"nofollow noopener\">between 5% to 7% churn per year<\/a> and around 1% or less monthly.<\/p>\n<p>Early-stage startups will understandably have higher churn as they&#8217;re still getting their footing, may still be struggling with <a href=\"https:\/\/userpilot.com\/blog\/product-market-fit-framework\/\" target=\"_blank\" rel=\"noopener noreferrer\">product-market fit, <\/a>or have products needing improvement. If you&#8217;re an early-stage startup or SMB, expect an average annual churn of 10% to 15%.<\/p>\n<p>Churn also depends on your industry. Subscription management platform Recurly sampled over 1,500 sites in 19 months and <a href=\"https:\/\/recurly.com\/research\/churn-rate-benchmarks\/\" target=\"_blank\" rel=\"nofollow noopener\">reported<\/a> how churn rates differ between industries. Take a look:<\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/recurly-customer-churn-rate-benchmarks_60857c830a99affabd44d3d65dd8fe5a_800.png 1x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/recurly-customer-churn-rate-benchmarks_60857c830a99affabd44d3d65dd8fe5a_800.png 1x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/recurly-customer-churn-rate-benchmarks_60857c830a99affabd44d3d65dd8fe5a_800.png\" alt=\"recurly-customer-churn-rate-benchmarks\" \/><\/picture><figcaption>Average churn rate by industry. Image source: Recurly.<\/figcaption><\/figure>\n<h2 id=\"3m20m\"><strong>Most common reasons behind high churn rates<\/strong><\/h2>\n<p>Churn can happen for a thousand and one reason. But here are the most common ones:<\/p>\n<ul>\n<li><strong>Bad <a href=\"https:\/\/userpilot.com\/blog\/customer-fit\/\" target=\"_blank\" rel=\"noopener noreferrer\">product-customer fit<\/a>:<\/strong> Some companies attract customers through wrong <a href=\"https:\/\/userpilot.com\/blog\/product-positioning-examples\/\" target=\"_blank\" rel=\"noopener noreferrer\">positioning<\/a> or overpromising. Then the customer gets in and realizes the product can&#8217;t solve their problems, and they churn.<\/li>\n<li><strong>Poor onboarding<\/strong>: Even with the right audience, <a href=\"https:\/\/userpilot.com\/blog\/bad-user-onboarding-experience\/\" target=\"_blank\" rel=\"noopener noreferrer\">a bad onboarding experience <\/a>can result in churn. Users will experience delayed <a href=\"https:\/\/userpilot.com\/blog\/the-aha-moment-for-product-onboarding-activation\/\" target=\"_blank\" rel=\"noopener noreferrer\">aha moments<\/a>, and many won&#8217;t have the patience to wait and see if the tool is for them.<\/li>\n<li><strong>Bad customer service: <\/strong>Long wait times, back-and-forth conversations, and any such support friction-weary customers. The negative experience leads to churn.<\/li>\n<li><strong>Weak customer relationships<\/strong>: Failing to listen to customers through <a href=\"https:\/\/userpilot.com\/blog\/active-vs-passive-customer-feedback\/\" target=\"_blank\" rel=\"noopener noreferrer\">active and passive feedback<\/a> leads to weak company-customer connections. These users are quick to replace you with competitors\u2014they don&#8217;t feel valued and won&#8217;t have a problem leaving.<\/li>\n<li><strong>Price increases: <\/strong><a href=\"https:\/\/userpilot.com\/blog\/price-increase-announcement\/\" target=\"_blank\" rel=\"noopener noreferrer\">Price increases<\/a> are tricky. More often than not, existing customers won&#8217;t feel it&#8217;s justified and would rather switch to cheaper alternatives.<\/li>\n<\/ul>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/leading-causes-of-attrition_430a7109c6ace57e8cd26a181c9fc7d6_800.png 1x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/leading-causes-of-attrition_430a7109c6ace57e8cd26a181c9fc7d6_800.png 1x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/leading-causes-of-attrition_430a7109c6ace57e8cd26a181c9fc7d6_800.png\" alt=\"leading-causes-of-attrition\" \/><\/picture><figcaption>Causes of customer churn. Source: Zonka.<\/figcaption><\/figure>\n<h2 id=\"2au34\"><strong>Other metrics subscription-based companies should track<\/strong><\/h2>\n<p>By tracking the following metrics, you&#8217;ll have a more holistic understanding of your business and identify improvement areas:<\/p>\n<ul>\n<li><strong><a href=\"https:\/\/userpilot.com\/blog\/retention-rate-meaning\/\" target=\"_blank\" rel=\"noopener noreferrer\">Customer retention rate<\/a>: <\/strong>This is the opposite of the customer churn rate; it refers to the number of customers your company keeps over a given period. By analyzing retention rates over a specific period, you can better understand <a href=\"https:\/\/userpilot.com\/blog\/customer-behavior-analytics\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer behavior<\/a> and identify <a href=\"https:\/\/userpilot.com\/blog\/churn-risk\/\" target=\"_blank\" rel=\"noopener noreferrer\">potential churn patterns.<\/a> Calculate your retention rate by dividing the number of customers who remained active by the total number of customers in that period and multiplying by 100.<\/li>\n<li><a href=\"https:\/\/userpilot.com\/blog\/expansion-mrr\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Monthly recurring revenue:<\/strong> <\/a>This is the predictable recurring income generated from customers on a monthly basis. To calculate, multiply the number of monthly subscribers by the average revenue per user (ARPU).<\/li>\n<li><strong>The average revenue per user:<\/strong> This is the amount your company can expect to generate from an individual customer. Analyzing the ARPU across different customer segments helps identify variations in revenue generation. With this data, you can predict if specific customer segments are more likely to churn or need additional attention to prevent churn. Calculate ARPU by dividing your total revenue in a specific period by the total number of users in that period.<\/li>\n<li><strong><a href=\"https:\/\/userpilot.com\/blog\/measure-customer-loyalty\/\" target=\"_blank\" rel=\"noopener noreferrer\">Customer loyalty<\/a><\/strong>: This is an ongoing positive relationship between customers and your business that results in <a href=\"https:\/\/userpilot.com\/blog\/repeat-customers\/\" target=\"_blank\" rel=\"noopener noreferrer\">repeat purchases<\/a> and <a href=\"https:\/\/userpilot.com\/blog\/word-of-mouth-wom\/\" target=\"_blank\" rel=\"noopener noreferrer\">word-of-mouth referrals<\/a>. Measure loyalty through <a href=\"https:\/\/userpilot.com\/blog\/in-app-nps-survey\/\" target=\"_blank\" rel=\"noopener noreferrer\">NPS surveys<\/a>\u2014your loyal customers are promoters that give you a 9 or 10 NPS rating. By tracking NPS and analyzing the distribution of scores, you can identify segments of customers who may be more prone to churn and focus on improving their experience and loyalty.<\/li>\n<li><strong>Overall customer satisfaction:<\/strong> This metric measures how well your company&#8217;s products meet customer expectations. Track it using <a href=\"https:\/\/userpilot.com\/blog\/microsurveys-saas-product\/\" target=\"_blank\" rel=\"noopener noreferrer\">CSAT microsurveys<\/a> with a rating scale at important <a href=\"https:\/\/userpilot.com\/blog\/customer-touchpoints\/\" target=\"_blank\" rel=\"noopener noreferrer\">touchpoints<\/a> in the user journey.<\/li>\n<\/ul>\n<h2 id=\"28kv0\"><strong>7 Customer retention strategies to reduce customer churn rates<\/strong><\/h2>\n<p>We\u2019ve already discussed numerous ways to calculate, track, and benchmark churn. The next logical step would be actively working on improving your rates.<\/p>\n<p>Implement the following strategies to increase <a href=\"https:\/\/userpilot.com\/blog\/user-retention\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer retention<\/a> in your SaaS:<\/p>\n<h3 id=\"d6dpm\"><strong>Personalize user onboarding for different customer segments<\/strong><\/h3>\n<p>Personalization streamlines your onboarding flow and ensures users only see the features they need. Users will <a href=\"https:\/\/userpilot.com\/blog\/time-to-value\/\" target=\"_blank\" rel=\"noopener noreferrer\">experience value fast<\/a>, reach activation quickly, and be more willing to stick with you.<\/p>\n<p>You can <a href=\"https:\/\/userpilot.com\/blog\/personalized-onboarding-for-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">create personalized onboarding<\/a> by using a <a href=\"https:\/\/userpilot.com\/blog\/welcome-screen-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">welcome survey<\/a> to collect new user data. Focus your survey questions on understanding the user&#8217;s <a href=\"https:\/\/userpilot.com\/blog\/customer-pain-points\/\" target=\"_blank\" rel=\"noopener noreferrer\">pain points<\/a> and <a href=\"https:\/\/userpilot.com\/blog\/jtbd-product-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">jobs to be done<\/a>. Use that data to personalize their onboarding paths.<\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/postify-welcome-screen-reduce-customer-churn-rate_2599f9502473e3b9a44f7895e684458d_800.png 1x, https:\/\/images.storychief.com\/account_6827\/postify-welcome-screen-reduce-customer-churn-rate_2599f9502473e3b9a44f7895e684458d_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/postify-welcome-screen-reduce-customer-churn-rate_2599f9502473e3b9a44f7895e684458d_800.png 1x, https:\/\/images.storychief.com\/account_6827\/postify-welcome-screen-reduce-customer-churn-rate_2599f9502473e3b9a44f7895e684458d_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/postify-welcome-screen-reduce-customer-churn-rate_2599f9502473e3b9a44f7895e684458d_800.png\" alt=\"postify-welcome-screen-reduce-customer-churn-rate\" \/><\/picture><figcaption>Welcome survey example.<\/figcaption><\/figure>\n<h3 id=\"f6ubc\"><strong>Use interactive walkthroughs to contextually guide new customers<\/strong><\/h3>\n<p><a href=\"https:\/\/userpilot.com\/blog\/interactive-walkthroughs-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">Interactive walkthroughs<\/a> show users how to use a feature <a href=\"https:\/\/userpilot.com\/blog\/step-by-step-guides\/\" target=\"_blank\" rel=\"noopener noreferrer\">step-by-step<\/a>. Trigger it contextually to eliminate confusion and help users gain value from your features.<\/p>\n<p>This is much better than bland<a href=\"https:\/\/userpilot.com\/blog\/product-tours\/\" target=\"_blank\" rel=\"noopener noreferrer\"> product tours<\/a>\u2014or worse, leaving users to figure out your tool on their own.<\/p>\n<p><a href=\"https:\/\/userpilot.com\/blog\/contextual-help\/\" target=\"_blank\" rel=\"noopener noreferrer\">Contextual guidance <\/a>improves feature adoption rates, and churn will reduce as customers begin to use and find your features valuable.<\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/rocketbots-interactive-walkthrough_073ced30488c54c56876712c0ab341c5.gif 1x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/rocketbots-interactive-walkthrough_073ced30488c54c56876712c0ab341c5.gif 1x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/rocketbots-interactive-walkthrough_073ced30488c54c56876712c0ab341c5.gif\" alt=\"Rocketbots-interactive-walkthrough\" \/><\/picture><figcaption>Interactive walkthrough example from Rocketbots.<\/figcaption><\/figure>\n<div class=\"poptin-embedded\" data-id=\"1d64611216178\"><\/div>\n<h3 id=\"97kmr\"><strong>Leverage secondary onboarding to retain existing customers<\/strong><\/h3>\n<p>Onboarding doesn&#8217;t stop when new customers start using your tool comfortably. Employ <a href=\"https:\/\/userpilot.com\/blog\/secondary-onboarding\/\" target=\"_blank\" rel=\"noopener noreferrer\">secondary onboarding<\/a>\u2014introduce users to more advanced features and use cases once they&#8217;ve adopted the key features.<\/p>\n<p>You can do this with contextual <a href=\"https:\/\/userpilot.com\/blog\/in-app-messaging\/\" target=\"_blank\" rel=\"noopener noreferrer\">in-app messages<\/a> such as <a href=\"https:\/\/userpilot.com\/blog\/modal-ux-design\/\" target=\"_blank\" rel=\"noopener noreferrer\">modals<\/a>, hotspots, tooltips, etc.<\/p>\n<p>Secondary onboarding drives repeated value and <a href=\"https:\/\/userpilot.com\/blog\/improve-product-adoption-rate-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">improves product adoption breadth and depth.<\/a> Churn also reduces because the more users integrate the product into their lives, the less likely they are to stop using it.<\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/modal-for-secondary-onboarding-reduce-customer-churn-rate_0b491566eef54c9aa5e628c624010570_800.png 1x, https:\/\/images.storychief.com\/account_6827\/modal-for-secondary-onboarding-reduce-customer-churn-rate_0b491566eef54c9aa5e628c624010570_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/modal-for-secondary-onboarding-reduce-customer-churn-rate_0b491566eef54c9aa5e628c624010570_800.png 1x, https:\/\/images.storychief.com\/account_6827\/modal-for-secondary-onboarding-reduce-customer-churn-rate_0b491566eef54c9aa5e628c624010570_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/modal-for-secondary-onboarding-reduce-customer-churn-rate_0b491566eef54c9aa5e628c624010570_800.png\" alt=\"modal-for-secondary-onboarding-reduce-customer-churn-rate\" \/><\/picture><figcaption>Feature announcement modal in <a href=\"https:\/\/userpilot.com\/userpilot-demo\" target=\"_blank\" rel=\"noopener noreferrer\">Userpilot.<\/a><\/figcaption><\/figure>\n<h3 id=\"bpkjn\"><strong>Measure customer satisfaction across the user journey<\/strong><\/h3>\n<p>Use short <a href=\"https:\/\/userpilot.com\/blog\/microsurveys-saas-product\/\" target=\"_blank\" rel=\"noopener noreferrer\">microsurveys <\/a>to measure customer satisfaction at <a href=\"https:\/\/userpilot.com\/blog\/customer-touchpoints\/\" target=\"_blank\" rel=\"noopener noreferrer\">different touchpoints.<\/a> The typical CSAT survey is quantitative, but you can also ask follow-up questions for <a href=\"https:\/\/userpilot.com\/blog\/qualitative-feedback\/\" target=\"_blank\" rel=\"noopener noreferrer\">qualitative insights<\/a>. Combining both will help you better understand what causes <a href=\"https:\/\/userpilot.com\/blog\/customer-dissatisfaction\/\" target=\"_blank\" rel=\"noopener noreferrer\">dissatisfaction<\/a>.<\/p>\n<p>The next step is to segment unhappy customers and proactively reach out to them to offer help and <a href=\"https:\/\/userpilot.com\/blog\/churn-prevention-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">prevent churn<\/a>.<\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/feature-csat-survey-userpilot_29261cb7b613f16c72c872c4439d6f16_800.png 1x, https:\/\/images.storychief.com\/account_6827\/feature-csat-survey-userpilot_29261cb7b613f16c72c872c4439d6f16_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/feature-csat-survey-userpilot_29261cb7b613f16c72c872c4439d6f16_800.png 1x, https:\/\/images.storychief.com\/account_6827\/feature-csat-survey-userpilot_29261cb7b613f16c72c872c4439d6f16_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/feature-csat-survey-userpilot_29261cb7b613f16c72c872c4439d6f16_800.png\" alt=\"feature-csat-survey-userpilot\" \/><\/picture><figcaption>Building CSAT survey in<a href=\"https:\/\/userpilot.com\/userpilot-demo\" target=\"_blank\" rel=\"noopener noreferrer\"> Userpilot.<\/a><\/figcaption><\/figure>\n<h3 id=\"3lgoc\"><strong>Offer self-serve support to remove friction and improve customer experience<\/strong><\/h3>\n<p>Making customers who already have a problem wait for hours before receiving help will only push them away further. Prevent this by building robust <a href=\"https:\/\/userpilot.com\/blog\/self-service-support-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">self-serve support<\/a> that allows users to get quick and easy help no matter the time of day.<\/p>\n<p>You can go one step further and personalize the help according to users&#8217; <a href=\"https:\/\/userpilot.com\/blog\/jtbd-product-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">JTBD<\/a> and place it in the <a href=\"https:\/\/userpilot.com\/blog\/how-to-analyze-the-customer-journey\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer journey<\/a>. For example, you might have sections such as &#8220;Getting Started,&#8221; &#8220;Troubleshooting,&#8221; &#8220;Advanced Features,&#8221; &#8220;Account Management,&#8221; etc.<\/p>\n<p>You can also utilize user data and behavior to dynamically recommend relevant <a href=\"https:\/\/userpilot.com\/blog\/how-to-build-a-knowledge-base\/\" target=\"_blank\" rel=\"noopener noreferrer\">knowledge base<\/a> content.<\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/knowledge-base-userpilot-customer-churn-rate_b7a827e49bc4c922821ef0fd92abbd34_800.png 1x, https:\/\/images.storychief.com\/account_6827\/knowledge-base-userpilot-customer-churn-rate_b7a827e49bc4c922821ef0fd92abbd34_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/knowledge-base-userpilot-customer-churn-rate_b7a827e49bc4c922821ef0fd92abbd34_800.png 1x, https:\/\/images.storychief.com\/account_6827\/knowledge-base-userpilot-customer-churn-rate_b7a827e49bc4c922821ef0fd92abbd34_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/knowledge-base-userpilot-customer-churn-rate_b7a827e49bc4c922821ef0fd92abbd34_800.png\" alt=\"knowledge-base-userpilot-customer-churn-rate\" \/><\/picture><figcaption><a href=\"https:\/\/userpilot.com\/userpilot-demo\" target=\"_blank\" rel=\"noopener noreferrer\">Userpilot&#8217;s <\/a>in-app self-serve support.<\/figcaption><\/figure>\n<h3 id=\"d6ra7\"><strong>Track in-app customer behavior to identify at-risk customers<\/strong><\/h3>\n<p>Definitely keep tabs on customer pulse and monitor <a href=\"https:\/\/userpilot.com\/blog\/user-behavior-tracking\/\" target=\"_blank\" rel=\"noopener noreferrer\">user behavior<\/a> to identify drops and spikes in user activity. Try to analyze further to find the reasons for the sudden changes.<\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/page-activity-userpilot-800_d73a9fa59ef32acb27f9dbadf996c3e3_800.png 1x, https:\/\/images.storychief.com\/account_6827\/page-activity-userpilot-800_d73a9fa59ef32acb27f9dbadf996c3e3_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/page-activity-userpilot-800_d73a9fa59ef32acb27f9dbadf996c3e3_800.png 1x, https:\/\/images.storychief.com\/account_6827\/page-activity-userpilot-800_d73a9fa59ef32acb27f9dbadf996c3e3_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/page-activity-userpilot-800_d73a9fa59ef32acb27f9dbadf996c3e3_800.png\" alt=\"page-activity-Userpilot_\" \/><\/picture><figcaption>Customer activity tracking on Userpilot.<\/figcaption><\/figure>\n<p><a href=\"https:\/\/userpilot.com\/blog\/user-segmentation\/\" target=\"_blank\" rel=\"noopener noreferrer\">Segment<\/a> disengaged users and trigger <a href=\"https:\/\/userpilot.com\/blog\/reengage-inactive-users-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">re-engagement flows<\/a> to win them over. This could be anything from <a href=\"https:\/\/userpilot.com\/blog\/saas-win-back-email-campaign-examples\/\" target=\"_blank\" rel=\"noopener noreferrer\">win-back email campaigns<\/a> to <a href=\"https:\/\/userpilot.com\/blog\/tooltip-examples-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">tooltips<\/a> that prompt users to engage with a key feature that will bring value to them.<\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/user-segmentation-userpilot-customer-churn-rate_d8796cf4d30fe32e44f85c6eda9d55e3_800.png 1x, https:\/\/images.storychief.com\/account_6827\/user-segmentation-userpilot-customer-churn-rate_d8796cf4d30fe32e44f85c6eda9d55e3_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/user-segmentation-userpilot-customer-churn-rate_d8796cf4d30fe32e44f85c6eda9d55e3_800.png 1x, https:\/\/images.storychief.com\/account_6827\/user-segmentation-userpilot-customer-churn-rate_d8796cf4d30fe32e44f85c6eda9d55e3_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/user-segmentation-userpilot-customer-churn-rate_d8796cf4d30fe32e44f85c6eda9d55e3_800.png\" alt=\"user-segmentation-userpilot-customer-churn-rate\" \/><\/picture><figcaption>Customer segmentation on <a href=\"https:\/\/userpilot.com\/userpilot-demo\" target=\"_blank\" rel=\"noopener noreferrer\">Userpilot.<\/a><\/figcaption><\/figure>\n<h3 id=\"2gtir\"><strong>Collect feedback from churned customers to understand what went wrong<\/strong><\/h3>\n<p><a href=\"https:\/\/userpilot.com\/blog\/churn-surveys-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">Churn surveys<\/a> let you know the reasons behind churn and fix them to prevent other customers from leaving for the same reasons.<\/p>\n<p>As with every survey, timing is important here. Trigger your churn surveys in-app as soon as users hit the cancel account button. No one will go ahead and answer a survey they got via email after they finished <a href=\"https:\/\/userpilot.com\/blog\/cancellation-flow-examples\/\" target=\"_blank\" rel=\"noopener noreferrer\">canceling their account.<\/a><\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/exit-survey-customer-churn-rate_80c8c020213548e1219e3db2fa73396b_800.png 1x, https:\/\/images.storychief.com\/account_6827\/exit-survey-customer-churn-rate_80c8c020213548e1219e3db2fa73396b_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/exit-survey-customer-churn-rate_80c8c020213548e1219e3db2fa73396b_800.png 1x, https:\/\/images.storychief.com\/account_6827\/exit-survey-customer-churn-rate_80c8c020213548e1219e3db2fa73396b_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2025\/11\/exit-survey-customer-churn-rate_80c8c020213548e1219e3db2fa73396b_800.png\" alt=\"exit-survey-customer-churn-rate\" \/><\/picture><figcaption>Create code-free churn surveys with<a href=\"https:\/\/userpilot.com\/userpilot-demo\" target=\"_blank\" rel=\"noopener noreferrer\"> Userpilot.<\/a><\/figcaption><\/figure>\n<h2 id=\"fj96e\"><strong>Conclusion<\/strong><\/h2>\n<p>Ensure to regularly track churn rates (monthly is ideal). This will enable you to make data-driven decisions that proactively prevent churn among new and existing users.<\/p>\n<p>Userpilot can help with that. As previously mentioned, our platform lets you understand churn through <a href=\"https:\/\/userpilot.com\/blog\/user-behavior-tracking\/\">user behavior tracking<\/a> and in-app surveys and triggers customized product experiences <a href=\"https:\/\/userpilot.com\/blog\/drive-retention\/\">to drive retention<\/a>.<\/p>\n<p><a href=\"https:\/\/userpilot.com\/userpilot-demo\" target=\"_blank\" rel=\"noopener noreferrer\">Book a demo<\/a> now to talk with our team and begin the process of reducing the customer churn rate for your business!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customer churn is the rate at which customers discontinue their subscription or stop using a particular product or service. This article shows you various ways to calculate churn, make sense of the data, and create proactive solutions to retain more customers.<\/p>\n","protected":false},"author":24,"featured_media":115726,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[82],"tags":[5088,533,505,834,1035,285,86,245],"class_list":["post-115725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-growth","tag-business-growth","tag-churn-rate","tag-churn-surveys","tag-customer-churn-rate","tag-customer-loyalty","tag-customer-retention","tag-customer-satisfaction","tag-user-retention"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Customer Churn Rate: How to Calculate and Improve Churn<\/title>\n<meta name=\"description\" content=\"Tracking your customer churn rate will help you keep tabs on customer retention and drive growth. Learn the formulas to do so with ease.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/userpilot.com\/blog\/customer-churn-rate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Customer Churn Rate: How to Calculate and Improve Churn\" \/>\n<meta property=\"og:description\" content=\"Tracking your customer churn rate will help you keep tabs on customer retention and drive growth. 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