5% is the average subscription churn rate for B2B companies.
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.
A 5% average subscription churn rate for B2B companies matters because it indicates the rate at which these businesses are losing customers. With a relatively low churn rate, it suggests that B2B companies have a higher customer retention rate and are likely providing value and maintaining strong relationships. Maintaining a low churn rate is crucial for sustained growth and profitability in the B2B sector.
