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Churn rate is the share of customers, or of recurring revenue, lost in a period, usually a month, through cancellations and failed renewals.

Customer churn is cancelled customers divided by customers at the start of the period. Revenue churn does the same with MRR, and can be offset by upgrades from customers who stay.

Consumer AI tools often see high monthly churn, because users sign up for one task and leave. Products tied to a recurring job, a team or a niche workflow churn less.

Failed payments cause a large share of churn. Retrying cards, reminding users before renewal and offering yearly plans all help.

Churn rate in Aikeedo

Aikeedo supports monthly, yearly and lifetime plans, workspaces for teams and saved work such as assistants and libraries, which give users reasons to stay.

Related terms

Discover more terms connected to this one

MRR (Monthly Recurring Revenue)

MRR (monthly recurring revenue) is the predictable subscription revenue a business earns each month, with yearly plans counted as one twelfth per month.

Read the guide

LTV (Customer Lifetime Value)

LTV (customer lifetime value) is the total gross profit a business expects from one customer over the whole time they stay a customer.

Read the guide

Retention rate

Retention rate is the share of customers still active after a given time; it is the opposite side of churn.

See in the glossary

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