Definition
The rate at which customers stop using a product or cancel a subscription over a given period.
Why it matters for growth
Churn is the mirror image of retention and directly caps how large a business can grow before new acquisition is entirely offset by losses.
Example
A company loses 5% of its paying customers every month, meaning nearly half its customer base turns over annually if unaddressed.
FAQ
- What is Churn?
- The rate at which customers stop using a product or cancel a subscription over a given period.
- Why does Churn matter for growth?
- Churn is the mirror image of retention and directly caps how large a business can grow before new acquisition is entirely offset by losses.
- What is an example of Churn?
- A company loses 5% of its paying customers every month, meaning nearly half its customer base turns over annually if unaddressed.