Customer Churn


What is Customer Churn?

Churn refers to the loss of customers over time. Churn can occur when customers cancel their subscription to a SaaS product, or when they stop using the product altogether.

Why Customer Churn is an important metric?

It provides businesses with significant insight into the success of their products and services. Knowing why customers are leaving a business, or ‘churning’, can give insight into what changes need to be made in order to improve customer loyalty, satisfaction and retention.

How to calculate Customer Churn?

It is calculated by measuring the number of customers who cease to be active within a given period, divided by the total number of customers in that period