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Learn about Churn

Is 1% churn bad?

Last Updated: July 2024


Maybe. It depends.

Churn is simply a calculation of the percentage of customers that leave your business over a given period of time.

If you have a 1% churn rate, that means that 1% of your customers leave your business every month.

To think of it another way, you need to replace 1% of your customers every month just to stay even.

So if you started the month with 100 customers, 1 would leave without you doing anything.

Do you see that as a problem?

Whilst there are some benchmarks to compare your churn rate to, the truth is that it depends on your business model.

If you're seeing huge growth in your customer base, then a 1% churn rate might not be a problem. But if your growth is slow or non-existent, then a 1% churn rate is a big problem.

It can be a symptom of a bigger problem, such as a poor product, poor customer service, or poor marketing. As soon as it gets to be uncomfortable, you need to do something about it.

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