Churn Rate

Noun · Startup & VC

Definitions

  1. The percentage of customers or revenue lost over a given period. Logo churn counts customers lost; revenue churn measures MRR lost. Negative net revenue churn (expansion from existing customers exceeds losses) is the holy grail for SaaS businesses.

    In plain English: The rate at which customers cancel their subscriptions, measured as a percentage over time.

    Example: "Our monthly churn is 3% — at that rate, we lose a third of our customers every year. We need to fix onboarding."

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