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TERM
Churn
Percent of prior buyers who did not repurchase in the current period.
Definition
Churn measures buyer loss over time and signals brand health. It focuses on households that bought before but failed to buy again within the defined window.
How to Calculate
Divide the number of prior‑period buyers who made zero purchases in the current period by total prior‑period buyers, then multiply by 100.
Why it Matters
High churn raises acquisition costs and erodes base sales. Reducing churn increases repeat and lifetime value.
Key Advantages
Gives a clear retention target for the team. Flags segments that need different messaging, such as price or flavor variety. Ties directly to revenue forecasts and inventory planning.
Example
Of 5,000 bottled water buyers last quarter, 1,200 did not repurchase this quarter, so churn is 24 percent.
Use it to
Compute the percent of prior buyers who did not repurchase in the current period to quantify loss. Isolate high-loss cohorts and timing so retention actions target the steepest drop-off.















