Churn Rate

Churn rate measures the proportion of customers lost during a given time period. The term is commonly used in service companies and can measure, for example, the percentage of customers who cancel their subscription during a month.

Why is Churn Rate important?

A high churn rate means you're losing a large share of customers, while a low rate shows you're succeeding at retention. For SaaS businesses, even small reductions in churn can dramatically impact LTV and long-term profitability.