Churn

Churn is customer churn, the percentage of customers who stopped using a product or subscription during a period. It is calculated as (lost clients ÷ clients at the beginning of the period) × 100%.

Churn is the main negative metric for subscription businesses (SaaS, EdTech, streaming). A 1% decrease in churn usually gives greater growth than a 10% increase in acquisition.

In my practice, churn is divided into two types: - Voluntary churn - the client himself refuses (tired, did not find value) - Involuntary churn - the card has expired, the payment did not go through (often 30–40% of the total churn)

Involuntary churn is easy to treat: dunning campaigns, map updates, warnings. Voluntary churn is more complex and requires work with the product and onboarding.

A healthy monthly churn for b2c subscriptions is 5–8%, for b2b SaaS — 1–3%. If higher, the product is “leaky”, the retention team is more necessary than acquisition.