Count the Number of Customers that Churned

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Recurly Research reports that the average churn rate in B2B is 4.91 percent. And B2C sees 6.77 percent.

About 3.9 percent of churn is voluntary—due to customer dissatisfaction. And about 1.4 percent is involuntary—due to payment issues.

According to Paddle, the average churn rate for SaaS companies falls between 2 and 8 percent of MRR. This supports Recurly’s research, which shows the average churn rate in software landing around 4.75 percent.

Consumer goods and retail see 7.55 percent, healthcare 6.03 percent—and so on.

Of course, other factors can impact the number of churned customers you see in a given period, including the age and size of the company or the pricing structure. So, watch your industry benchmarks, but remember to use your own numbers to benchmark progress over time.

How to Calculate Churn Rate in 5 Easy(ish) Steps
We know the formula, but let’s narrow down the exact steps to calculate your business's churn rate (and monitor it over time).

How to Calculate Churn Rate in 5 Easy(ish) Steps
Step 1: Determine the Time Period
Subscription-based businesses might track their churn thailand telegram data rate every month (based on usage patterns or payment structures), while another B2B company may track it quarterly.

Choose a period that fits your industry, the frequency of customer interactions, and your pricing and subscription model. That way, you can track and compare your churn rates over time and make data-driven decisions.

Step 2: Define your Customer Base
Use your CRM or another data tool to define the number of customers you had at the beginning of your chosen period. Exclude any new customers.

To get more granular, segment your current customers by demographics, subscription details (like pricing tier), acquisition channel, or product use case. This cohort analysis can help you identify trends and prioritize the right activities.

Example: Let’s say customers you acquire through LinkedIn ads have a 4.8 percent churn rate, while those from cold sales outreach churn at just 2.8 percent. Knowing this, you can prioritize and reduce the LinkedIn churn (assuming it’s a significant channel for your business).