What Benchmarks Exist for Churn by Industry?
Compare your churn against practical ranges by industry and model. Then use cohort and NRR views to distinguish healthy turnover from preventable churn.
Churn benchmarks vary widely by industry, buyer size, and contract model. Use them as guardrails—then build your own cohort baselines by segment, product, and tenure. Track Gross Revenue Retention (GRR) and Net Revenue Retention (NRR) alongside logo churn to capture both how many customers you lose and how much revenue expands or contracts.
How to Read Churn Benchmarks
Indicative Churn Ranges by Industry & Model
Ranges below are directional starting points. Your stage, pricing, and mix will move the target. Measure churn monthly for monthly terms and annually for annual terms.
Logo & Revenue Churn Reference Matrix
| Industry / Model | Typical Logo Churn | Best-in-Class | Typical GRR / NRR | Notes & Drivers |
|---|---|---|---|---|
| SaaS (B2B Enterprise, annual) | 5–10% / yr | ≤3% / yr | GRR 88–95% · NRR 110–125% | Multi-year, stickiness from integrations, expansion via seats/modules. |
| SaaS (B2B SMB, monthly) | 2–5% / mo | ≤1% / mo | GRR 80–90% · NRR 95–110% | Higher price sensitivity; save/reactivation and billing hygiene matter. |
| Consumer Subscriptions (media, fitness, apps) | 3–8% / mo | ≤2% / mo | GRR 70–85% · NRR 85–100% | Seasonality; bundles and annual prepay reduce churn. |
| E-commerce (non-subscription) | N/A | N/A | Repeat rate 25–45% / yr | Focus on repeat purchase rate, 90-day retention, and cohort AOV. |
| Payments/Fintech Consumer | 1–3% / mo | ≤1% / mo | Active user GRR 85–95% | Onboarding friction, card-on-file, and habit formation dominate. |
| Telecom / ISP | 1–2% / mo | ≤0.8% / mo | GRR 85–92% | Contract lock-in, service quality, and competitive promos. |
| B2B Services (MSP, Agencies) | 10–25% / yr | ≤8% / yr | GRR 85–95% · NRR 95–110% | Scope changes; QBRs and outcome proofs reduce attrition. |
| Healthcare Memberships | 1–4% / mo | ≤1% / mo | GRR 85–95% | Benefit clarity, access speed, and billing transparency. |
| Education / EdTech Subscriptions | 2–6% / mo | ≤1.5% / mo | GRR 80–92% · NRR 90–105% | Academic cycles; engagement and credential value are key. |
Operational Benchmarking Sequence
- Define metrics: Logo churn, GRR, NRR; monthly or annual based on terms.
- Build cohorts: Track by start month, plan, region, and segment (SMB/Enterprise/Consumer).
- Separate causes: Voluntary vs. involuntary churn; identify save levers.
- Normalize seasonality: Compare YoY and seasonally adjust where needed.
- Tie to economics: Monitor LTV:CAC and payback alongside churn.
- Govern targets: Set “guardrails” by segment; review each quarter.
Client Snapshot: Churn Guardrails in Action
After instituting cohort reporting and targeted save/reactivation plays, a subscription business reduced monthly churn and held NRR above 110%. Explore results: Comcast Business
Ground your approach in the Key Principles of Revenue Marketing and operationalize measurement with the Metrics Dashboard.
Frequently Asked Questions about Churn Benchmarks
Benchmark Your Churn the Right Way
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