Metrics
Churn Rate
The percentage of service subscribers who discontinue their subscriptions within a given time period.
What is Churn?
Churn is the enemy of growth. It represents the customers who leave your service. In a subscription business (SaaS), managing churn is often more important than acquiring new customers.
Formula
(Customers lost during period / Total customers at start of period) * 100
Types of Churn
- Customer Churn: Percentage of customers lost.
- Revenue Churn: Percentage of recurring revenue lost.