Churn rate
The percentage of customers (or revenue) a business loses over a given period. Lower is better.
Churn rate measures the share of customers or revenue lost in a period. Customer churn counts cancelled accounts; revenue churn counts lost MRR, which can be offset by expansion revenue from remaining customers (net revenue churn).
Churn compounds: even a few percent per month meaningfully caps growth over a year. Reducing involuntary churn (failed payments) and improving retention is often higher-leverage than acquiring new customers.
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