Subscriptions & Recurring Revenueintermediate
Churn
Definition
The rate at which subscribers or customers cancel or stop paying over a period, usually shown as a percentage of the base you started with.
Why it matters
Churn is the leak in a subscription business. A high churn rate means you have to win new customers just to stand still, so lowering it is often worth more than adding new sign-ups.
Example
You start the month with 200 subscribers and 10 cancel. Your monthly churn is 5%.
Related terms
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