Full definition
Churn Rate = (customers lost / total customers) × 100. A 5% monthly churn rate is considered reasonable; 10%+ is a problem. SaaS businesses with low churn (under 2%) grow faster.
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Why it matters
Churn is a leaking bucket. While it stays high, every new customer only replaces one who left, and you pay for acquisition without growing.
🧮 A worked example
A business with 200 customers and 8% monthly churn loses 16 customers a month. Simply to stand still it must win 16 new ones; to grow 10% it needs 36.
⚠️ The common mistake
Measuring churn in customers rather than revenue. If the ones leaving are your largest accounts, 5% customer churn can be 15% revenue churn.
🔗 Related terms
More terms in Analytics & Metrics
Impressions
How many times your post appeared on someone's screen
Reach
The number of unique people who saw your post
Engagement Rate
The percentage of viewers who commented, liked, or shared
Conversion Rate
The percentage of visitors who complete a desired action
LTV (Lifetime Value)
How much an average customer is worth over the life of the relationship
CAC (Customer Acquisition Cost)
How much it costs to win a new customer
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