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
Related terms
CLV (customer lifetime value)
Total margin a customer generates across the whole relationship, not just the first order.
SalesNPS (Net Promoter Score)
Satisfaction metric: percentage of promoters minus percentage of detractors on a 0-10 scale.
B2B commerceOrder history & reorder
Customer access to past orders with the option to quickly reorder them, fully or partially.