5.6% is the overall average subscription churn rate across all industries.
The study examined a sample of over 1,500 subscription sites processing subscription billing on the Recurly platform from January to December 2018. Churn rates were calculated monthly by dividing the number of subscribers who churn during the month by the number of subscribers at the beginning of the month. The study used the median, 25th, and 75th percentile values to eliminate outliers and provide a more accurate representation of the data.
The statistic of a 5.6% overall average subscription churn rate across all industries is significant because it highlights the challenge that businesses face in retaining customers. High churn rates can lead to decreased revenue and increased marketing costs. Companies need to address their churn rates by implementing strategies to improve customer satisfaction and loyalty, ultimately impacting their long-term success.
