Explore the data

Is your churn rate within a healthy range?

Churn is a fact of life for any subscription business, and slight fluctuations in churn can make a significant impact to the bottom line.

Comparative data by industry, audience, and price point helps gauge the health of your business. Recurly has compiled comprehensive data on churn, based on a sample of over 1,200 sites over 12 months, to provide benchmarks.

How Does Your Churn Rate Compare?

Your churn rate is an indicator of the health of your subscription business and should be monitored closely.

0.00%

Overall Churn Rate

Churn rates vary widely, and minimizing churn is key to growth and long-term success of a subscription business.

B2B

6.22%

B2C

8.11%

B2B vs. B2C

We found that B2C companies experience higher churn than B2B companies, whose purchases may be more considered.

Voluntary

4.78%

Involuntary

1.73%

Voluntary vs. Involuntary

Voluntary churn indicates customer dissatisfaction, while involuntary churn points to payment issues.

Minimizing Voluntary vs. Involuntary Churn

Different factors lead to different kinds of churn—each requiring a specific approach. Improving customer satisfaction reduces cancellations that result in voluntary churn, while optimizing payment processing minimizes payment declines that lead to involuntary churn. Subscription businesses must address both types in order to effectively lower their overall churn rate.

Churn Rate by Industry

Different industries have different factors that affect churn. Understanding these factors helps subscription businesses formulate effective strategies to combat churn.

  • All Industries
  • SaaS
  • Media & Entertainment
  • Education
  • Box of the Month
  • OTT/SVOD
  • Consumer Goods
  • Consumer Services
  • Business Services

All Industries

Median

 
 
   
 
 
 
 
   
 
 
 
 
   
 
 
 
 
   
 
 
 
 
   
 
 
 
 
   
 
 
 
 
   
 
 
 
 
   
 
 

Churn Rates

Median

 
 
   
 
 
 
 
   
 
 
 
 
   
 
 

Voluntary Churn

All

-%

B2B

-%

B2C

-%

Involuntary Churn

All

1.89%

B2B

1.39%

B2C

2.16%

Key Insight

Churn tends to be seasonal, mirroring the school year

B2C companies tend to experience wider variances in churn rates particularly at higher price points.

Churn Rates by Average Revenue Per Customer (ARPC)

Price has a definite affect on churn. Higher-priced subscriptions experience less churn, possibly because the purchase is more considered. Subscribers both sign up and cancel more readily in categories with lower price points.

  • All Cohorts
  • Less than $10
  • $10 to $25
  • $25 to $50
  • $50 to $100
  • $100 to $250
  • Greater than $250

All Cohorts

Median

 
 
   
 
 
 
 
   
 
 
 
 
   
 
 
 
 
   
 
 
 
 
   
 
 
 
 
   
 
 

Churn Rates

Median

 
 
   
 
 
 
 
   
 
 
 
 
   
 
 

Voluntary Churn

All

-%

B2B

-%

B2C

-%

Involuntary Churn

All

1.89%

B2B

1.39%

B2C

2.16%

Understanding the different factors that drive churn is the first step, taking action is the next.

Recovered Revenue Calculator

How much revenue can you recover by preventing involuntary churn?

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Key Subscription Metrics

Learn how to measure the health of your subscription business.

View the list

Methodology

We examined a sample of over 1,200 subscription sites over a period of 12 months (January – December 2016) and aggregated and anonymized the data. Monthly churn rates equal the total number of churned subscribers during the month divided by the number of subscribers at the beginning of the month. Our study uses median, 25th, and 75th percentile values which eliminate outliers and provide a more accurate representation of the data. The involuntary churn number presented excludes sites that may choose to leave a subscription active and not churned, despite declined payments.