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Churn rate

Quick answer

The share of active customers who stop ordering in a given period.

Key takeaways

  • Set a normal reorder interval per segment (e.g. 45 days)
  • A customer at twice that interval with no order counts as lost
  • Churn = lost customers / active customers at period start

In recurring B2B, churn is rarely announced - the customer simply stops ordering, so it is measured on behaviour rather than cancellation.

Practical definition

  • Set a normal reorder interval per segment (e.g. 45 days)
  • A customer at twice that interval with no order counts as lost
  • Churn = lost customers / active customers at period start

What to do with it

  • Automatic inactivity alerts before it is too late
  • Root-cause analysis: price, availability, delivery, lack of contact

Real-world example

Of 480 active customers, 36 stopped ordering in six months: 7.5% churn. At €6,000 average annual margin, that is over €200,000 annualised.

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Frequently asked

By count or by value?+

Both. Value churn shows real impact; count churn shows whether the problem is systemic or concentrated.

How does a CRM prevent churn?+

Inactivity alerts on the customer record, planned portfolio visits, and visibility on categories that disappeared from orders.

Where CRMconnect fits

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