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Churn Rate — The percentage of customers who stop buying or cancel a subscription over a given period.
What Is Churn Rate?
Churn rate is most associated with subscriptions, but a store without one can adapt it to track how many past customers simply stop buying again within a given period.
How to Calculate Churn Rate
Formula: (Customers Lost During Period ÷ Customers at Start of Period) × 100.
Why Churn Rate Matters for Dropshippers
A store can keep acquiring new customers while quietly losing existing ones at the same pace, which caps growth even as ad spend keeps rising. Churn rate is what makes that pattern visible.
FAQ
Does churn rate apply to a store without subscriptions?
It can be adapted to track how many past customers stop buying again within a certain period, even without a formal subscription in place.
What's a good churn rate?
It varies widely by industry and business model, so tracking whether your own churn rate is improving or worsening over time is usually more useful than comparing to an outside benchmark.
How can I reduce churn?
Email marketing, loyalty incentives, and simply delivering a good experience on the first order are common ways to keep customers coming back.