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Business
Churn Rate
The percentage of customers who stop using your product or service during a given period.
Churn rate is the enemy of subscription and SaaS businesses. Even small reductions in churn can have huge effects on revenue over time because of the compounding effect of keeping customers longer.
It's the leak in your bucket — no matter how much new water you pour in, some keeps draining out.
Real world: A subscription app with 10,000 customers loses 400 in a month. Its monthly churn rate is 4%. Reducing churn to 2% would dramatically improve profitability without needing to acquire more customers.
💡 Lower churn is almost always more valuable than higher customer acquisition.