What is Churn rate?
Churn rate is the percentage of members or program clients who leave in a period, voluntarily through cancellation or involuntarily through failed payments that never recover. It is the decay rate of recurring revenue: growth must outrun churn before it grows anything at all.
How it works in an aesthetic clinic
A clinic with 200 members loses 8 in a month: 4% monthly churn, which means 50 new sign-ups grew the base by 42, not 50. Splitting voluntary from involuntary matters because the fixes differ: cancellations are a value-and-experience problem, while failed payments are a dunning problem that automation largely solves.
Churn rate vs retention rate
| Churn rate | The share of the base that left this period |
|---|---|
| Retention rate | The share that stayed: the same coin viewed from the other face |
Why it matters for clinic operators
Subscription economics live or die on churn: a point of monthly churn compounds into a large share of the base over a year. Clinics that watch only sign-ups discover this in the annual numbers, after the year is gone.
On the platform: Memberships & recurring billing
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