Peel Analytics

Losing subscribers is part of every business. But how many you lose, and how fast, defines long-term growth. Subscriber Churn Rate is the metric that shows how many customers stop buying or cancel subscriptions within a given period. For e-commerce brands, controlling churn is critical for profitability and retention.

What is Subscription Churn rate?

Definition: Churn rate is the percentage of subscribers who discontinue from your brand or service over a defined period.

Formula: (Subscribers Lost During a Time Period / Total Customers at the Start of the Time Period) x 100

Example: If you start a month with 1,000 subscribers and lose 50, your churn rate is 5%.

Why subscription churn matters in e-commerce

1. Revenue predictability: High churn creates revenue instability, making forecasting difficult.
   
   
2. LTV impact: Churn directly shortens customer lifespan, reducing lifetime value.
   
   
3. Acquisition pressure: The higher the churn, the more customers you must acquire just to maintain revenue.

Peel helps brands track churn across cohorts, products, and campaigns — making it easier to identify patterns and fix them.

How to subscription reduce churn

• Onboarding matters: For subscription brands, the first 30 days are make-or-break. Educate, delight, and set expectations early.
  
  
• Personalized retention campaigns: Segment churn risk groups in Peel and re-engage them with relevant offers.
  
  
• Feedback loops: Collect churn feedback (surveys, exit forms) to address usability or product gaps.
  
  
• Consistency in value: Customers churn when they don’t feel consistent value, highlight product quality and benefits.
  

FAQs

What is a healthy subscription churn rate?
It varies by industry. Average e-commerce subscriptions often aim for under 8% monthly subscription churn rate.

Is churn the opposite of retention?
Yes, churn measures loss, while retention measures loyalty. Together, they show brand health.

Does churn apply only to subscriptions?
No. it applies to any e-commerce customer base. For non-subscription brands, churn reflects how many customers fail to repurchase.

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