What is subscriber churn?

Subscriber churn is when customers stop using the recurring products or services of a subscription business over a certain period of time. Churn rate is one of the most important metrics for subscription businesses to track, as generally, customer acquisition costs are often far higher than those for retaining existing customers. By taking steps to reduce churn and improve subscriber retention rates, businesses can set themselves up for increased revenue and customer lifetime value (LTV), as well as monthly recurring revenue (MRR). There are several ways that a subscription business can calculate churn rate, but most important is to establish a baseline for your business and measure churn consistently over time to effectively hone your strategy.

How can subscription businesses reduce churn rates? 

There are several strategies subscription businesses can use to reduce customer churn rate. One of the most effective strategies for reducing subscriber churn rate is to make your subscriptions as flexible as possible, with options for customers to manage their own subscriptions (including product swaps and the ability to reschedule or even skip a delivery). This improves the customer experience in a way that encourages your customer base to stay with your business longer, increasing LTV and revenue.