Churn is the share of customers who stop working with you during a period. It is one of the key metrics in recurring revenue models such as subscriptions, maintenance contracts or regular supply.
How to calculate it
Churn rate = customers lost during the period ÷ customers at the start of the period
Example: if you had 200 maintenance customers in January and 14 did not renew during the year, annual churn is 7%.
Early warning signs
- More support cases or SLA breaches
- No contact for a long time
- A contract end date approaching with no renewal conversation started
In CRModular
Contracts are linked to the account with start and end dates, and support cases, activities and sales history are on the same customer card. Reports can list contracts nearing their end date and customers with SLA breaches.