Updated October 2026

The short version

Survival analysis answers one question: how long until something happens? It can be how long until a customer stops buying, how long until a subscriber cancels, or how long until a machine breaks. The answer is a line that starts at 100 and slides down as time goes by. You can read the line like a clock: at this time, this many are still going.

What it does

For every person or thing, you note two facts. First, how long you watched them. Second, whether the thing you care about happened. The method turns those two facts, for everyone together, into one curve. The curve shows what share is still going at each point in time. Where the curve crosses 50, half have gone. That time is called the median.

What the data looks like

One row for each customer. Here are three made-up rows, only to show the shape:

CustomerMonths watchedWent quiet?
A1Yes
B9Yes
C12No, still buying

The third column is the clever part. Customer C has not gone quiet yet. We do not know how C's story ends. Analysts call this "censoring". The method does not throw C away, and it does not call C a leaver. It counts C for the 12 months we really saw, and no longer.

A real example

The data are 3,978 customers of one UK online shop, in pounds. We called a customer "lapsed" after six months with no purchase. That is our choice, and a different rule would move the numbers. Of the 3,978 customers, 2,017 had lapsed and 1,961 were still buying at the last look.

Out of every 100 of those customers, this many were still buying:

  • after 1 month: 71
  • after 3 months: 67
  • after 6 months: 61
  • after 12 months: 52

The line crosses 50 at about 14 months (a likely range of 13 to 15). In all, 1,140 customers bought in one month only. So the biggest drop came in the very first month, and then the line fell slowly.

The other ways people do it

Three common shortcuts answer a nearby question. Each one misses something.

  • Average tenure. Add up how long customers stayed and divide. The trouble is the customers who are still buying. Their stay is not over, so their number is too small. If you leave them out, you keep only the leavers, and the average looks worse than the truth. If you count them as they stand, the average is still too small. Either way, the average is off.
  • A churn rate. For example, "We lose 5 percent a month" is one number for the whole life of a customer. It hides when the loss happens. A shop that loses most customers in month one and few after looks the same as a shop that loses them evenly. Those two shops need very different fixes.
  • A histogram of lifetimes. A bar chart of how long customers lasted. It has the same trap as the average: it only shows the customers whose story has ended, and it leaves out everyone still buying. The bars lean toward short stays.

Survival analysis answers what each shortcut misses. It uses the customers who are still buying, and it shows the whole shape over time.

When it is better

Use it when two things are true. You care about how long until something happens, and some of the people are not finished yet. That is nearly always the case with customers, subscriptions and anything that has not ended by the day you look. When everyone's story has already ended, a plain average can be fine. That is rare in business.

Why use it

You see when the loss happens, not just how much. You can see the cliff in month one, or the slow slide later, and you can pick the right fix. You also get a median that counts the customers who are still buying fairly. It still depends on your rule for lapsed.

What it does not show

The curve says when customers went quiet. It does not say why. The example is one shop and one group of customers, so it says nothing about which kinds of customers stay longer. Another shop, another season or another rule for "lapsed" would give a different line.

Run it on your own customers

Upload a file with a time column and a flag for who has gone quiet, and read the curve and the median.

Run the free survival tool

Sources: Data: Chen, D. (2012). Online Retail II. UCI Machine Learning Repository. CC BY 4.0. A UK online retailer, GBP. Changes: customers grouped by first purchase month, January 2010 to May 2011; lapsed means six full months with no purchase.