Churn Analytics: Easiest Way to Calculate and Track
The six cardinal churn analytics to track are: revenue churn, customer churn, involuntary churn, voluntary churn, retention cohorts and cake charts. Churnkey is the easiest way to keep a pulse on them.
What Is Churn Analytics?
Churn analytics helps measure the customers that leave your business. This can include free users and paid users.
A Free Churn Analytics Software To Track
You can use Churnkey's Free Churn Metrics to uncover churn metrics that other tools don’t surface. This granular view will help you tackle churn in a more targeted way.
1. Revenue vs. Logo Churn:
Customer churn shows how many customers you're losing, while revenue churn reveals how much money you're losing. This distinction matters because losing many small customers might not hurt your bottom line as much as losing a few high-paying ones.
Additional Reading:
- Revenue Churn And Its Common Pitfalls
- Calculate Customer Retention Rate and Revenue Retention [Calculator]
2. Involuntary vs. Voluntary Churn:
Your churn analytics must break down whether your customers are leaving by choice (voluntary) or due to payment issues (involuntary). By understanding the difference between voluntary and involuntary churn, you can develop targeted strategies to address each type.
Additional Reading:
- What Is Involuntary Churn, How To Reduce It, Benchmarks
- A List of Decline Code Reasons
3. Cohort Charts
As a business matures, as much as 50-80% of revenue should come from existing accounts, meaning churn and expansion should be #1 focus.
The cohort retention chart tracks how customer segments retain over a 12-month period, giving you a detailed, month-by-month view of churn trends.
Additional Reading: Retention Cohort Analysis: Four Simple Ways
4. Cake Charts
The cake chart offers a layered visualization of how much revenue each cohort is contributing over time, making it easy to compare performance by year. Both the r retention cohort and the cake charts show how effectively your retention strategies fare.
Additional Reading: Customer Retention Curve: Calculator, Definition, Examples
5. Customer Health Scoring (paid)
Low, medium, and high risk: every customer has a place in your world. It’s a new, powerful way to think about your accounts, and it’s a healthy way for your teams to decide where to spend their treasure.
Why Churn Is The Silent Killer
Let’s take a look at an example comparing two competitors — Apple Corp and Banana Corp. Even though Banana acquires twice as many customers as Apple does, Banana still loses due to a slightly lower retention rate.
| New Users Per Month | Monthly Retention Rate | MAU after 3 years | |
|---|---|---|---|
| Apple | 1M | 85% | 6.6M |
| Banana | 2M (double!) | 65% (just 20% less) | 5.7M |
Every subscription business should have access to powerful retention insights. That’s why we’re offering Churn Metrics completely free.
Access Your Churn Analytics for Free—No Engineering Required
Just connect your subscription billing platform, and you’ll instantly unlock a wealth of retention data. With SOC-2 compliance and robust security measures, your data remains fully protected.
