Shopify Ops Glossary
Churn Rate
The percentage of customers or subscribers who stop buying within a given period.
Definition
Churn rate measures customer attrition — the percentage of your customer base that does not make a repeat purchase (for transactional brands) or cancels (for subscription brands) within a defined period.
Why It Matters for Shopify Brands
A 5% reduction in churn can increase profitability by 25–95% (Bain & Company). Churn is often driven by ops failures: slow responses, unresolved issues, and poor returns experiences.
Benchmarks
Monthly subscription churn benchmark: 5–10% for consumables, 2–5% for premium products. Annual transactional brand repeat purchase rate: 20–40%.
Need help improving your Churn Rate?
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