Question 1

What is customer churn?

Accepted Answer

The rate at which customers stop doing business with a company over a given period, usually expressed as a percentage of the total customer base lost.

Question 2

How is customer churn rate calculated?

Accepted Answer

Customers lost during a period divided by customers at the start of that period, multiplied by 100.

Question 3

What's the difference between voluntary and involuntary churn?

Accepted Answer

Voluntary churn is a customer actively choosing to leave; involuntary churn happens unintentionally, most often due to a failed payment.

Question 4

What's the difference between customer churn and revenue churn?

Accepted Answer

Customer churn counts the number of customers lost; revenue churn measures the actual revenue lost, which can tell a very different story if lost customers were low-value.

Question 5

What is net revenue retention?

Accepted Answer

A metric that accounts for both churned revenue and expansion revenue from existing customers, which can exceed 100% even with some churn present.

Question 6

Why is involuntary churn often the easiest to fix?

Accepted Answer

Because it's typically a technical or billing issue, like a failed payment, rather than a deeper product or value problem.

Question 7

What's the difference between early-life and late-life churn?

Accepted Answer

Early-life churn happens shortly after sign-up, often due to poor onboarding; late-life churn happens after extended use, often due to fading engagement or changing needs.

Question 8

What mistakes should teams avoid when tracking churn?

Accepted Answer

Tracking only customer churn without revenue churn, treating all churn types the same, and waiting to react until after a cancellation request.

Question 9

What is a leading indicator of churn?

Accepted Answer

A behavioral signal, like declining login frequency or a skipped onboarding step, that reliably predicts a customer is likely to churn before they actually cancel.

Question 10

Which tools help track and reduce churn?

Accepted Answer

Mixpanel, Amplitude, ChartMogul, Stripe, and customer health platforms like Vitally or ChurnZero are commonly used.

What Is Customer Churn and How Do You Reduce It?

Learn better with active recall quiz

Q1: How is customer churn rate calculated?

Frequently Asked Questions