Client Churn Rate
Agency glossary · Updated July 2026
Definition
Client churn rate is the percentage of clients, or of recurring revenue, that an agency loses over a period, usually measured monthly or annually. It sets the leak rate on the revenue base, so every new client first has to backfill a lost one before the agency grows.
Clients lost in period / clients at start of period x 100Why it matters
Cutting churn a few points compounds into longer client lifespans and far more retained revenue than the same effort spent on new sales.
Benchmark
Retainer agencies average roughly 15 to 20% annual logo churn, with top performers at 8 to 10% and project-based shops far higher.
Common mistake: tracking only logo churn and ignoring revenue churn, so losing one large anchor client looks the same as losing three small ones.
Related terms
See it in AgencyKit
Frequently asked questions
Retainer agencies average roughly 15 to 20% annual client (logo) churn, with top performers holding it to 8 to 10%. Project-based shops churn far higher. A common healthy target is keeping 85 to 90% of clients per year.
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