E-commerce Glossary

Churn Rate

Percentage of customers lost over a given period.

Churn Rate measures the proportion of customers who stop buying. Formula: Churn Rate = Lost Customers / Customers at Start of Period x 100. A monthly churn of 5% means you lose 5 out of every 100 customers each month. In e-commerce, churn is often implicit (the customer simply stops buying). Reducing churn by even a few points can double LTV and transform your store's profitability.

Related terms

AOV (Average Order Value)Average amount spent per order in your store.See definition ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition CLV / LTV (Customer Lifetime Value)Total value a customer generates over their entire relationship.See definition
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