Chart: Quantity Churn Rate

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Quantity Churn Rate charts the rate at which your customers cancel subscriptions or reduce their number of seats or licenses over time.

TL;DR

Quantity Churn Rate charts the loss of subscriptions (rather than customers or revenue) over time.

For companies that sell individual licenses or seats, Quantity Churn Rate tracks the loss of these licenses or seats. For companies that don’t, Quantity Churn Rate tracks the loss of whole subscriptions.

Subscriptions vs. Subscription Quantity

If your company sells individual licenses or seats, it’s important to understand the difference between Subscriptions and Subscription Quantity.

Subscriptions are specific instances of plans your customers have subscribed to, whereas Subscription Quantity is the number of these subscriptions.

For example, Syncalytics subscribes to four Gold plans and five Silver plans. They have two subscriptions (1 x Gold + 1 x Silver) with a subscription quantity of nine (4 x Gold + 5 x Silver).

If your company doesn’t sell licenses or seats (or your billing system doesn’t support subscription quantities), then Quantity Churn Rate will represent the rate at which you lose whole subscriptions.

Chart Notes

Calculation

ChartMogul calculates Quantity Churn Rate based on your Churn Rate Formula setting.

Standard Formula (B2B)

Formula

Math equation: the number of subscriptions lost in the period excluding customers who both join and churned in the period divided by the number of subscriptions at the start of the period

Example

At the start of the month, your customers have ten active subscriptions. During the month, you lose two subscriptions: one from an existing customer and one from a new customer who purchased the subscription that month. Your quantity churn rate is 10%: 1 / 10.

Shopify Formula (B2C)

Formula

Math equation: sum of open paren the number of subscriptions at the start of the day minus the number of subscriptions at the end of the day close paren divided by the number of subscriptions at the start of the day

Example

At the start of Monday, you have 100 active subscriptions. That day, you lose five subscriptions. The next day, you gain another ten but lose five, leaving you with 100 subscriptions at the end of Tuesday.

The quantity churn rate for this period is the sum of each day’s quantity churn rate:

  • Monday’s quantity churn rate: (100 − 95) / 100 = 5%
  • Tuesday’s quantity churn rate: (95 − 100) / 95 = −5.26%

The quantity churn rate for Monday – Tuesday is −0.26%. A negative quantity churn rate indicates you’re gaining new subscriptions faster than losing them.

Chart Data

The Chart Data table for Quantity Churn Rate works differently than other charts. It provides the following breakdown:

  • Quantity Decrease — The quantity of subscriptions canceled in the period.
  • Subscriptions Quantity — The quantity of subscriptions at the end of the period.
  • Quantity Churn Rate — The calculated churn rate for the period.

Select a Quantity Decrease cell to see a complete list of churn activities.

Next Steps

  • Use the Subscription Quantity chart to view the total number of active subscriptions by number of licenses or seats.
  • Learn more about other churn rate charts.
  • See which subscriptions are scheduled to churn with CMRR.
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