Churn Rate

Churn Rate is a metric that measures the percentage of customers who cancel or do not renew their subscriptions over a given period. In the SaaS industry, a high churn rate can significantly impact recurring revenue and indicates potential issues with customer satisfaction, product fit, or competitive pressures.

Understanding and reducing churn rate is crucial for sustained growth. Companies often analyze churn data to identify patterns, gather feedback, and implement retention strategies such as improving customer support, enhancing product features, or adjusting pricing models.