Churn

Category: Metrics

The rate at which customers or revenue leave your business over a period.

Customer churn = customers lost ÷ customers at period start. Revenue churn factors in expansion (gross vs. net churn). Best-in-class B2B SaaS runs under 5% annual gross churn; SMB SaaS often runs 3 to 5% monthly. Churn cohorts by acquisition source reveal which channels bring durable customers vs. tourists.

Related terms

• Retention
• LTV (Customer Lifetime Value)

Part of the AMA Orlando marketing glossary. See also the chapter's free marketing calculators and templates and playbooks.