Startup Metric
How customer and revenue churn work, how to calculate them, and why retention changes SaaS economics.
Core formula
Customer churn = customers lost ÷ customers at start of period
SECTION 01
The useful way to interpret definition is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 02
The useful way to interpret customer churn is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 03
The useful way to interpret revenue churn is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 04
The useful way to interpret formula is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 05
The useful way to interpret example is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 06
The useful way to interpret cohorts is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 07
The useful way to interpret common mistakes is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 08
The useful way to interpret reducing churn is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.