Determines the percentage of customers who stop using a service or product over a given period, providing insights into customer retention efforts.
The churn rate is a key metric for understanding customer retention in a SaaS business. It measures the percentage of customers who stop subscribing to your service during a specific period.
Formula: Churn Rate = (Customers Lost during the Period / Customers at the Beginning of the Period) * 100
You can use this formula to calculate the churn rate over any given period, such as monthly, quarterly, or annually. Simply provide the number of customers you started with and the number of customers lost during that period.