Article · 8 min read

Churn Benchmarks: Enhancing Customer Retention

Shaoli Paul · Chargebee Free Beginner

Gives per-industry churn thresholds so you can answer 'is my churn bad' with a number instead of a feeling. Software sits around 6 percent, which surprises a lot of first-time founders.

• Per-industry churn thresholds: over 6 percent is high for software, over 5 percent for technology.
• Monthly churn rate = churned customers divided by customers at the start of the month, times 100.
• Worked example: 1,000 customers, 30 lost and 20 gained, gives a net churn rate of 2 percent.