The percentage of clients who stop working with an agency during a specific period.
The percentage of clients who stop working with an agency during a specific period.
Client churn rate (also called attrition rate) measures the percentage of clients lost over a period. It's the inverse of retention rate. High churn rates indicate problems with service delivery, communication, or client satisfaction that need immediate attention.
Marketing agencies typically see 10-20% annual churn. Anything above 20% signals serious problems. Churn is expensive—acquiring a new client costs 5-7x more than retaining an existing one. Understanding why clients leave is essential for reducing churn.
If an agency loses 8 clients out of 50 in a year, the churn rate is: (8/50) × 100 = 16%
Angelwood identifies clients showing disengagement signals 3+ weeks before they typically cancel, giving you time to intervene.
Explore related concepts
The percentage of clients an agency keeps over a specific period, typically measured annually.
A composite metric that predicts client satisfaction and churn risk based on engagement signals.
The percentage of recurring revenue retained from existing clients, including expansions, contractions, and churn.