Churn rate is the percentage of customers or revenue lost during a specific period. Customer churn measures how many customers cancel. Revenue churn measures how much revenue is lost from cancellations and downgrades. Low churn is the foundation of a scalable recurring revenue business.
Definition
Understanding Churn Rate
Churn rate is the percentage of customers or revenue lost during a specific period. Customer churn measures how many customers cancel. Revenue churn measures how much revenue is lost from cancellations and downgrades. Low churn is the foundation of a scalable recurring revenue business.
Related Concepts
Related Terms
- ARR
- Net revenue retention
- LTV
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