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Churn RateHealthTechSeries A

Churn Rate for HealthTech at Series A

2026 data · Sample size: 285 · Source: OpenView SaaS Benchmarks 2025
25th %ile
3.9%
Median
5.7%
75th %ile
8.7%
90th %ile
12.2%
▼Trending down year-over-year

About This Metric

Percentage of customers or revenue lost during a given period. The inverse of retention.

Customers Lost / Starting Customers × 100

Lower is better · Unit: percentage

How to Improve

Implement proactive customer success outreach triggered by declining usage patterns. Build an automated health score that identifies at‑risk accounts 60 days before renewal. Conduct exit interviews to understand churn reasons and address root causes. Improve onboarding completion rates so customers realize value quickly. Create switching costs through integrations, data, and workflow dependencies.

Ehsan's Analysis

HealthTech churn is the lowest in all of software — enterprise health IT annual churn is typically 2-5%, and for deeply embedded systems like EHRs, it is effectively 0%. This sounds great until you realize the flip side: sales cycles are 12-24 months. The low churn rate means competitors also do not churn out — making new customer acquisition brutally competitive. For consumer healthtech, the picture inverts: meditation apps, fitness trackers, and telehealth platforms see 60-80% annual churn because health behaviors are hard to sustain. The healthtech churn divide: if your product is used by a clinician as part of their job, churn is under 5%. If your product requires a patient/consumer to maintain a behavior, churn is above 50%. No amount of engagement tactics overcomes this structural divide. The best consumer healthtech companies (Noom, Omada) reduce churn by embedding clinical accountability — human coaches who notice when you disengage. Technology alone cannot solve a motivation problem.

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Ehsan Jahandarpour

AI Growth Strategist & Fractional CMO · Forbes Top 20 Growth Hacker · TEDx Speaker · 716 Academic Citations

Frequently Asked Questions

What is a good Churn Rate for HealthTech companies at Series A stage?
The median Churn Rate for HealthTech companies at the Series A stage is 5.7%. Top‑quartile companies (75th percentile) significantly outperform this baseline. The most important factor is consistent improvement over time rather than hitting any single target number.
How does Churn Rate differ by company stage in HealthTech?
Churn Rate typically decreases as HealthTech companies mature from seed through growth stage. Earlier‑stage companies should benchmark against stage‑appropriate peers rather than comparing themselves to mature companies.
How often should HealthTech companies measure Churn Rate?
HealthTech companies at the Series A stage should track Churn Rate monthly with quarterly deep‑dive analysis. Set up automated dashboards and alerts for significant deviations from your baseline.
What factors most impact Churn Rate in the HealthTech sector?
In HealthTech, the primary factors impacting Churn Rate include product‑market fit maturity, competitive landscape intensity, customer segmentation strategy, pricing optimization, and operational efficiency. Series A‑stage companies should focus on the one or two highest‑leverage factors rather than trying to optimize everything simultaneously.
How does Churn Rate for HealthTech compare to cross‑industry benchmarks?
HealthTech Churn Rate benchmarks can differ significantly from cross‑industry averages due to factors specific to the HealthTech vertical including customer acquisition dynamics, competitive intensity, and typical deal sizes. Always compare against industry‑specific benchmarks rather than broad averages for meaningful insights.

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