Churn Rate
Churn rate is the percentage of customers who stop using a product or service over a given period.
How it works
It is usually calculated monthly or annually and is a key metric for measuring customer retention and business health. For SaaS or subscription-based companies, a low churn rate means more stable revenue and higher customer lifetime value.
Examples
- 1.A streaming platform calculates how many users cancel their subscriptions each month.
- 2.A project management SaaS tool analyzes how many business customers failed to renew within a quarter.
- 3.A mobile app tracks churn among its paying users over the course of a year.