Netflix: 2.5% monthly churn rate
Netflix has one of the lowest churn rates in the video streaming industry. Its monthly churn rate is surprisingly low at 2.5% , meaning that job function email list over 97% of customers choose to stick with Netflix. The reasons may include its vast catalog of shows and well-established brand image.
Disney+ : 4.3% monthly churn rate
Disney has always avoided being part of other streaming services and launched its own service to distribute its shows online. Users flocked to review b Disney+ when it launched in 2019, and not many have left. So it’s no surprise that Disney+’s monthly churn rate sits at a low 4.3% .
Spotify : 4.8% Monthly Churn Rate
Spotify is a popular music streaming service known for its personalized recommendations and vast music library. It has a reported churn rate of 4.8% .
Adobe : 10% annual churn rate
According to Rob Giglio, former vice president of digital media at Adobe, Adobe has an annual churn rate of less than 10% and a customer retention rate of over 90%.
With all these examples, it can be difficult what is awareness marketing? to identify what a good churn rate looks like for your company, as it is difficult to compare yourself with the big companies, so let’s try to analyze what a good churn rate is.
Churn rates should be set taking into account CAC and the average lifetime value of the customer. If your customers stay with you long enough to recover the cost of their acquisition and generate income, that’s a good thing, but if the average value is below your acquisition cost, you have a serious problem that could lead to bankruptcy.
But let’s not fool ourselves, you want to see numbers, so, broadly speaking, we are going to divide an optimal churn rate depending on whether the service is B2C or B2B.
If your service is B2C , a good churt rate can be 2-8%, and you should start to worry about it from 10%.
However, if your service is B2B , where there are usually fewer clients but the service is usually more expensive, the churn rate should not exceed 2%.
