Churn (Customer Churn)
The rate at which customers stop using a product over a given period.
Full definition
Churn is typically reported as a monthly or annual percentage. A 5 percent monthly churn means 5 percent of customers leave each month, which compounds to roughly half the customer base annually. Reducing churn is more capital efficient than acquiring new customers. Most SaaS businesses spend 30 to 50 percent of their operational effort on retention to control churn.
Related terms