What is churn?
Churn is the quantifiable loss of customers, users or revenue over a defined period. Churn is measured as customer churn (% of customers who cancel), revenue churn (% of recurring revenue lost) and gross vs. net churn (with and without expansion offsets).
Negative net revenue churn — where existing customers’ expansion offsets lost revenue — is a hallmark of best-in-class SaaS businesses. Churn analysis (by cohort, segment, reason, plan) is essential to product and pricing decisions.