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GlossaryJune 21, 20252 min read
Churn Rate
Churn target: under 5% annual. 5% monthly = 46% annual loss. Reducing churn > increasing acquisition.
By The Ad Spend
The percentage of customers or revenue lost over a period. High churn kills growth—you're filling a leaky bucket.
Formula
(Lost Customers ÷ Starting) × 100
Benchmark range
SaaS target: under 5% annual. Enterprise: under 10% annual. SMB: under 3-5% monthly is acceptable.
Why it matters
Churn multiplies acquisition problems. 5% monthly churn = 46% annual loss. 2% monthly = 22% annual. Reducing churn often delivers more value than increasing acquisition. Track why customers leave.
Where it applies
- SaaS Metrics