Churn Rate

Churn rate measures the percentage of customers who stop doing business with you during a given time period. It's one of the most critical metrics for subscription businesses. Types of churn: - Customer Churn: Percentage of customers lost - Revenue Churn: Percentage of revenue lost (accounts for different subscription values) - Logo Churn: Number of accounts lost (regardless of revenue) Common causes of churn: - Poor product-market fit - Inadequate onboarding - Lack of engagement - Competitor offerings - Payment failures (involuntary churn) - Pricing concerns Reducing churn: - Improve onboarding experience - Proactive customer success outreach - Build switching costs through integrations - Implement dunning for failed payments - Offer pause options instead of cancellation