What is churn rate?

Churn rate is the share of subscribers lost over a period — cancellations divided by the number of subscribers who were there to lose at the start of that period. It is the single number that tells a subscription business whether its customer base is compounding or leaking.

#Why the denominator decides the answer

Churn rate is easy to quote and easy to compute two different ways. Dividing by subscribers at the end of the window, or by an average, produces a different number from dividing by subscribers at the start. A rate is only comparable across months if the denominator rule never moves, so the rule matters more than the number.

#How WallaB.AI computes churn rate

The dashboard reports a 30-day churn rate: subscriptions cancelled in the last 30 days, divided by the subscriptions that were active at the start of that window — created on or before the window opened and not yet cancelled when it did. The result is a fraction between 0 and 1, and a store with no subscribers at the window start reads 0 rather than dividing by zero.

#Read it next to the reason

A churn rate on its own does not say what to fix. Split it by cause first: payment failures and voluntary cancellations move for entirely different reasons and are prevented by entirely different features — see Involuntary vs. voluntary churn. Then look at what shoppers actually said at the cancel moment, which the concierge records for every conversation.