Jan 6, 2026
Churn Rate
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The percentage of customers or revenue lost over a period. High churn kills growth—you're filling a leaky bucket.
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Formula:
(Lost Customers ÷ Starting) × 100
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Benchmarks
SaaS target: under 5% annual. Enterprise: under 10% annual. SMB: under 3-5% monthly is acceptable.
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Why It Matters
Churn multiplies acquisition problems. 5% monthly churn = 46% annual loss. 2% monthly = 22% annual. Reducing churn often delivers more value than increasing acquisition. Track why customers leave.
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