{"id":10349,"date":"2026-10-22T18:45:24","date_gmt":"2026-10-22T16:45:24","guid":{"rendered":"https:\/\/www.innowerft.com\/?p=10349"},"modified":"2026-10-22T18:46:13","modified_gmt":"2026-10-22T16:46:13","slug":"churn-rate-indicator-for-customer-loyalty","status":"publish","type":"post","link":"https:\/\/www.innowerft.com\/en\/churn-rate-indikator-fuer-kundenbindung\/","title":{"rendered":"What is the churn rate?"},"content":{"rendered":"

The Churn rate<\/strong> (Customer churn rate) is a key performance indicator that shows the proportion of existing customers lost within a specific period. It is expressed as a percentage and indicates the extent to which a company is affected by cancellations or the termination of existing customer relationships.<\/p>\n

This metric is particularly important for start-ups with subscription or SaaS business models. It helps to assess customer loyalty, the stability of recurring revenue and potential weaknesses in the product.<\/p>\n

 <\/p>\n

How is the churn rate calculated?<\/h2>\n

The calculation is carried out by dividing the number of customers lost by the customer base at the start of a given period.<\/p>\n

Churn rate = (Customers lost \u00f7 Customers at the start of the period) \u00d7 100<\/strong><\/p>\n

One example:<\/p>\n

A SaaS start-up begins with 200 paying customers in one month. During that month, ten companies cancel their subscriptions.<\/p>\n

The calculation is as follows:<\/p>\n

(10 \u00f7 200) \u00d7 100 = 5 %<\/strong><\/p>\n

The monthly churn rate is therefore 5 %. This means that the start-up lost 5 % of its original customer base within a month.<\/p>\n

In this simplified calculation, newly acquired customers are not included in the opening balance.<\/p>\n

 <\/p>\n

What are the causes of customer churn?<\/h2>\n

Customers may no longer be able to use a product or service for various reasons.<\/p>\n

Typical causes include:<\/p>\n