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How to calculate "churn rate" in email marketing

By Lidia - 24-11-2016 - Category: Email Marketing

Imagen How to calculate "churn rate" in email marke

Churn rate or attrition rate in email marketing refers to the percentage of subscribers who stop reading your newsletters for a period of time. This rejection rate is responsible for the number of subscribers of your lists dropping between 25% and 30% per year, so it is important that you know how to calculate it and what steps to take to counteract it.

There're 2 types of “churns”:

  • Transparent or voluntary churn: Refers to unsubscribes, hard bounces, and complaints. That is, subscribers who voluntarily (unsubscribe, complain) or not (hard bounces), will no longer receive your emails.

  • Opaque or involuntary churn: Refers to inactive subscribers, ie those who receive your emails but are not reading them.

Your subscribers may have stopped reading your emails for a variety of reasons, but the most common ones are that your emails reach the junk folder or that the email address with which they subscribed to your list is not their primary email account  and therefore, revise it very sporadically or never.

How I calculate my churn rate

Para calcular el churn rate de una lista, tienes que sumar el número de bajas, rebotes, quejas y suscriptores inactivos, y dividirlo entre el número total de suscriptores de tu lista.

To calculate the churn rate of a list, you have to add the number of unsubscribe, bounces, complaints and inactive subscribers, and divide it among the total number of your list' subscribers.

                       (unsubscribes+hard bounces+complaints+inactive)

Churn rate = ____________________________________________________

           Total number of subscribers

How do I reduce my churn rate

To reduce the churn rate of your list, you have to get the numerator of the previous formula to decrease and the denominator to grow. That is to increase your database of subscribers at the same time as you try to reduce the number of unsubcribes, hard bounces, complaints and inactive.

¿How to get it?

  • Checking and validating the email addresses of your lists
  • Trying to reduce the number of inactive subscribers.

 



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