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Stripe Churned Customers

Churned Customers measures the rate at which customers stop using a company's product or service within a certain period of time. It is an important metric for subscription-based businesses to track customer retention and identify areas for improvement.

With Databox you can track all your metrics from various data sources in one place.

Churned Customers 5% Start tracking this metric
  • About
  • Tech details

What Is Churn

Churn is the rate at which customers stop using a product or service and discontinue their relationship with a business.
This metric is mostly associated with the SaaS industry, but it’s also common in any other business with a subscription-based model.
Churn can have a significant impact on a business’s bottom line, as acquiring new customers can be more costly than retaining existing ones.
High churn rates can indicate underlying issues such as customer dissatisfaction, competitive pressures, or lack of engagement with the product or service.

How to Calculate Churn

Churn rate is typically calculated by dividing the number of customers lost during a specific period by the total number of customers at the beginning of that period, and then multiplying by 100 for a percentage result.

Churn Rate = (Number of Customers Lost / Total Number of Customers) x 100

Let’s say a company had 1,000 customers at the beginning of the month and during the same month, 50 customers decided to cancel their subscriptions.
Using the formula, we find that the churn rate for that particular month would be 5%.

What Is an Acceptable Churn Rate

There is a long list of factors that influence a business’s churn rate and there are no universal benchmarks that can be considered at face value.
However, there are some general ones that can give you useful insight and help you better understand the numbers in your industry.

We even pulled up some data from our product that you might find interesting:

If you want to stay on top of future trends and be able to instantly compare your performance to companies just like yours (in any given industry), you can join our Benchmark Groups – it’s free for everyone!
In terms of more general industry percentages, SaaS companies usually find a 5% to 7% churn rate acceptable.
However, the stage the company is in also plays a huge part.
For example, early-stage SaaS startups often experience higher churn rates initially as they refine their product-market fit and value proposition. They commonly see a churn rate of 10% to 20%.
At the same time, established SaaS companies with years of experience and more loyal customers might find anything over 3-4% unacceptable.

How to Reduce Churn

High churn rates can negatively impact your revenue and growth potential, which is why finding ways to increase customer loyalty is crucial.
We talked to hundreds of leading marketers and compiled some of the strategies they find the most useful:

  • Analyze location-specific customer churn for more granular insights: Conducting a location-specific churn analysis is a great way to obtain more granular data and find potential leaks that you can mitigate for better retention. For example, if you are seeing an increase in churn in a specific country, it might be because your product is too pricey for their standards. You can then try to reduce churn with special discounts for those countries.
  • Don’t always rely on hot-takes from industry leaders: Business owners often have to make decisions on the spot, and it can be easy to be swayed by hot-takes and rumors that other industry leaders are putting out. Stop relying on these hot takes and make sure to always consult your data and the team leaders that understand it before making any bigger changes.
  • Zero in on your best customer segments: This isn’t any groundbreaking advice, but it’s worth thinking about how much attention you are really paying to your best customers. Are you just giving them discounts every now and then or interviewing them frequently, building your product around the features they enjoy the most, and collecting their data to find more prospects like them? Focus on your best customer segments by constantly adding more value and building a genuine relationship with them.

More resources to help you improve:

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How to track Churned Customers in Databox?

Databox is a business analytics software that allows you to track and visualize your most important metrics from any data source in one centralized platform.

To track Churned Customers using Databox, follow these steps:

  1. 1
    Connect Stripe that contains the metric you want to track
  2. 2
    Select the metric you want to track from the list of available metrics
  3. 3
    Drag and drop the selected metric onto your dashboard
  4. 4
    Watch your dashboard populate in seconds
  5. 5
    Put Churned Customers on the Performance screen
  6. 6
    Get Churned Customers performance daily with Scorecards or as a weekly digest
  7. 7
    Set Goals to track and improve performance of Churned Customers
Stripe integration with Databox Track Churned Customers from Stripe in Databox GET STARTED

Stripe Churned Customers included in Dashboard Templates 1

  • Live view

    Customer Success Dashboard

    The Customer Success dashboard template uses HelpScout and Stripe to track customer service levels versus churn rates.

    Stripe Help Scout Mailbox

Stripe Churned Customers included in Report Templates 1

  • Details

    Stripe Report Template

    Use this Stripe report to share important ecommerce insights into churn rate, MRR growth, revenue volume, new customers, and more.

    Stripe

Basics

  • Description
    Churned Customers measures the rate at which customers stop using a company's product or service within a certain period of time. It is an important metric for subscription-based businesses to track customer retention and identify areas for improvement.
  • Category
    Payment Processing
  • Subcategory
    Customers
  • Date Added
    2015-04-28
  • Cumulative Support
    Yes
  • Units
    No
  • Granularities
    hourly, daily, weekly, monthly, quarterly, yearly
  • Favorable Trend
    decreasing
  • Historical Data
    Yes
  • Changing historical data
    No
  • Forecast Support
    Yes
  • Benchmark Support
    Yes
  • Media Support
    No
  • Dimension
    N/A
  • Metric Type
  • API Endpoint
    https://api.stripe.com/v1/subscriptions

Questions? We've got answers.

  • Why Do Customers Churn?

    Customers can churn for various reasons, including dissatisfaction with the product, lack of perceived value, competitive alternatives, poor customer experience, or changing needs.
    Or, they may encounter issues with the product’s functionality, encounter difficulties in onboarding or usage, or feel neglected in terms of customer support. Pricing, contract terms, and billing issues can also play a part.

  • What is churn vs. retention analysis?

    Churn analysis focuses on understanding and quantifying the rate at which customers discontinue their relationship with a company.
    On the other hand, retention analysis focuses on understanding customer retention. It involves studying customer behavior, preferences, and engagement to identify strategies that enhance customer loyalty and reduce churn.

  • What is the best way to analyze churn data?

    To analyze churn data properly, you need to consistently stay on top of your most important churn KPIs and track key churn metrics like cohort analysis, customer lifetime value, and churn rate in real-time.
    And the best way to do this is through business analytics tools like Databox.
    Instead of juggling dozens of spreadsheets and logging into multiple tools to extract data, you can connect your data source to Databox and pull out the most important metrics that you want to keep an eye on.
    If you’ve been spending hours on churn analysis so far, you can use Databox to cut that process down to just a few minutes.

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