What is Customer Churn Rate?
Share of customers who cancel in a period.
How to calculate it
Calculate Customer Churn Rate as: Customers lost / Customers at start × 100. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
Start with 500 customers and lose 15 in the month -> 3% monthly churn.
Example 2
Starting with 600 customers and losing 18 in the month -> 3% monthly churn, which compounds to roughly 31% annually if left unaddressed.
Why it matters
Customer churn rate is the share of customers who cancel in a period and is a direct measure of retention and product-market fit. Even small monthly churn compounds into large annual losses, so reducing it is one of the highest-leverage growth activities. Logo churn alone can hide the outsized revenue impact of losing a few large accounts.
Benchmark context
Under 5% annually is excellent for enterprise; SMB and consumer products run higher monthly rates. Pair with revenue churn to capture account value.
Common pitfalls
Logo churn hides revenue impact of big accounts.
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