What are your average churn rates for dedicated servers and/or hosting?

Ours are driving me mad right now, no matter how much love we give our customers....

If you don't want to give stats, just give a brief overview instead :)

Thanks!

I read somewhere that the average churn rate is between 2-3%

It greatly depends on who you market to, with some markets your churn rate will be 2-3% just like HiVelocity pointed out, however sign-up rate is rather slow.

Other markets I've seen churn rate is higher (15-25%), and still considered normal for that market. Growth however is very different too, not as slow as with some of the other markets.

It's summer, clients are canceling since they'd rather spend time outside.

a churn rate of 15-25% is very steep , not a very loyal client base there.

HiVelocity, you're absolutely wrong here :)

This is in a very different markets than you're in. Consider this:

You're offering Mambo software hosting. People that know what Mambo is are signing-up and are happy to be with you. People that don't know what Mambo is and are interested in trying it - will cancel in 1 hour after realizing it's not for them. Here you go, in no time you'll have 20% churn rate. The other 80% are absolutely loving it because they're familiar with it and were looking for it.

I hope it makes sense for you now.

Greetings:

We average 1 to 2% churn per year.

Thank you.

see chart below :)

1. type of hosting
a. shared
b. reseller
c. dedicated

2. type of hosting
a. budget/personal
b. e-commerce/business
c. big websites (using managed servers or clusters)

3. type of marketing
a. you got your customers from online promotions
b. customers come because you offer something special
(like cheap windows hosting with free MSSQL)
c. you got your customers using sales agent

if your customers base have (a) of each factor then %30 churn is good, if your customers have (c) of each factor then %5 is high churn and so on ..

user-base growth is more important than churn in hostig business, if you have %50 churn but your user-base growth (after churn) is %10 then it very good.