2 min read

What is Churn Rate?

Churn rate is the rate at which customers cut ties with your service during a given period. This percentage gives you a clear idea about your customer retention, which is an important factor defining a company's success.
What is Churn Rate?

Churn is a measurement of the percentage of accounts that cancel or choose not to renew their subscriptions. A high churn rate can negatively impact Monthly Recurring Revenue (MRR) and can also indicate dissatisfaction with a product or service.

Importance of churn rate in SAAS

Churn rate is easily one of the most essential metrics when measuring the performance of SaaS businesses. Totango reports that the fastest-growing companies will reduce churn rate less than 5%. For SaaS companies, a lot of time and money is spent on acquiring customers. Since this investment pays off over time, the goal is to have customers stick around for as long as possible. The longer your customers stay, you'll reduce churn rate and make your business stronger.

How to calculate Churn Rate?

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17 unbeatable ideas to reduce churn rate | Smart Insights
17 unbeatable ideas to reduce churn rate Preventing churn is key to improving revenue For subscription-based businesses like SaaS companies, churn rate is a crucial metric that determines overall.
https://www.smartinsights.com/traffic-building-strategy/integrated-marketing-communications/17-unbeatable-ideas-reduce-churn-rate/

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