Glossary Term
Churn Rate
The share of customers or revenue you lose over a period. Customer churn counts the accounts that leave; revenue churn counts the money they take with them. If churn is high, new acquisition mostly refills what walks out the back door.
Example: A SaaS product starts the month with 400 paying accounts and 20 cancel, so monthly churn is 5%. That sounds small until it compounds: at 5% a month the product loses almost half its customers in a year, and has to replace them before it can grow at all.
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