What Is Reactivation Rate?
The percentage of churned customers who return and resubscribe.
The percentage of churned customers who return and resubscribe.
Reactivation rate measures the percentage of previously churned customers who return and resubscribe. It's an often-overlooked metric that can significantly impact net growth.
A healthy reactivation rate suggests that customers leave for temporary reasons (budget cuts, team changes) rather than permanent dissatisfaction. Win-back campaigns can actively improve this metric.
Tracking reactivation separately from new acquisition is important because reactivated customers typically have lower acquisition costs and faster onboarding since they already know the product.
Formula
Reactivation Rate = (Reactivated Customers ÷ Total Churned Customers) × 100
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