Glossary · Metrics

What is involuntary churn?

Involuntary churn is the loss of subscribers whose renewal payment failed and was never recovered. They did not choose to cancel; their card expired, was declined or lacked funds, and the subscription lapsed.

How to measure involuntary churn

Split cancellations by cause. Involuntary churn rate is the subscribers lost to unrecovered payment failure in a month divided by subscribers at the start of the month. If a service with 10,000 subscribers loses 500 in a month and 150 of those were payment failures, involuntary churn is 1.5% and voluntary churn 3.5%.

Track the recovery rate too: of the renewals that failed first time, the share eventually collected.

Why it deserves separate attention

It is commonly a fifth to two fifths of all churn, and it is the easiest part to reduce, because nothing about the content or the price has to change. The subscriber wanted to stay.

How to reduce it

  • Retry failed charges on a schedule, at varied times
  • Email and notify in-app with a direct link to update the card
  • Keep access open during a short grace period
  • Warn subscribers before a card's expiry date
  • Use account updater services that refresh replaced card numbers
  • Offer payment methods that fail less often than cards in each market
  • Process payments locally, where banks approve more charges

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FAQ

Involuntary churn, answered.

More definitions in the streaming glossary.

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What is the difference between voluntary and involuntary churn?

Voluntary churn is a subscriber deciding to cancel. Involuntary churn is a subscription ending because a payment could not be collected.

What share of churn is involuntary?

It varies by market and payment method, and is often between 20% and 40% of cancellations. Measure your own split before assuming.

Can involuntary churn be eliminated?

No, but a good retry and reminder process recovers a majority of failed renewals.

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