Reducing churn is a top priority for every subscription business. It's no surprise that marketing and growth leaders want to know the latest churn rate benchmarks and trends and how these numbers impact the subscription industry to create their churn mitigation plan.

With this premise, we've created a comprehensive churn benchmark chapter with exclusive data from 2,200+ leading subscription brands. Let's check out the key takeaways.

Churn rate trend over time

The question many subscription businesses have: What is a good churn rate? For 2022, the average overall churn rate is 6.9%–while voluntary churn sits at 4.7% and involuntary churn sits at 2.2%. 


 Churn varies depending on industry and customer types. Netflix, for example, has one of the lowest monthly churn rates in the video streaming industry–strikingly low at 2.5%. Spotify has reported a monthly churn rate of 4.8%, and Peloton has an 8% annual churn rate.

Learn how your churn rate compares vs. others in the industry.

The impact of churn on the subscription industry

 Subscriber preferences directly impacts churn. The overall churn rate has remained steady, changing by less than 1% since 2018, showing that subscriptions are a consistent part of customers' lives. 

What drives signups and keeps subscribers engaged? Exclusive content, brand preference, and discounts. 

However, consumers are more sensitive to price changes and subscription value propositions. The average overall churn rate increase for 2022 reflects the economic uncertainty that concerns subscribers. 

Keeping this in mind, businesses must pivot to a retention focus. Reinforce your product or service’s relevance, be conscious of pricing, and fight involuntary churn with effective dunning strategies that extend lifetime value revenue.


Subscribers saved after a recovery event stayed active for an average of 320 days–confirming that recovery events are key for the long-term success of a subscriber’s journey. For B2B companies, this number escalated to 428 days, while B2C companies experienced an additional length of 308 days.

Get more insights: State of Subscriptions: The churn chapter.

The impact of Recurly on business results

Innovative and data-driven products are at the heart of our churn solutions. Recurly customers experienced steady churn rates despite inflationary pressures and challenging economic times. 

Our recovery features help minimize churn and drastically improve your bottom line. Recurly customers have an average monthly revenue lift of 12.1%, an average return on investment of 12.4x, and an average involuntary churn rate of just 2.2%.

Learn how Recurly helps its customers recover more than $2.2B in potentially lost revenue.

All the benchmarks. All the insights.

Everything you need to know about the latest insights on churn status for subscription businesses is just one click away:

  • Exclusive benchmark data from global brands like Twitch, TIME, Sprout Social, FabFitFun, Paramount+, and Sling

  • Overall, business-type, and industry-level churn pattern breakdowns of involuntary and voluntary churn

  • A comprehensive churn analysis and its impact on the subscription industry and how to respond strategically

  • Key churn trends during the year, along with Recurly’s impact on our customers’ churn rates specifically

Use this information to revamp your churn strategy, retain more subscribers, and maximize your recurring revenue.