What is Churn?

what is churn

Table of Contents What’s Churn? Why analyzing your churn is important? What is a Churn Analysis? What are the Most Common Churn Metrics for Subscriptions Businesses? What are some KPIs? How is Churn Used? When do you count a Customer as churned? What is the average churn rate for Saas? How does SaaSOptics help track…

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Logo Churn

logo churn

Logo churn is another term for customer churn and is a very important metric used by SaaS or subscription businesses as an input to the overall health of the business. All SaaS investors will ask about logo churn, as there is some common knowledge in the marketplace about acceptable and unacceptable thresholds of customer churn.…

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Revenue Churn

revenue churn

Revenue Churn Revenue Churn is a measure of the lost revenue. Like most subscription metrics, there is no universal definition. This metric is most often expressed as a whole number (rather than a ratio) but can be expressed as the actual lost revenue or more commonly, a normalized value such as ARR or MRR. Normalizing…

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MRR Churn

mrr churn

What is MRR Churn and why is it important to a SaaS business? MRR Churn is a form of revenue churn popularized by various presentations and white papers from venture capital firms such as Bessemer Ventures. As with all SaaS metrics, there is neither a firm nor well-established method for calculation of MRR Churn. This can…

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Calculating Churn in a SaaS Business

How do you calculate churn?

What is Churn? While there are many variations of churn, churn is always a measure of attrition or loss and is the most widely tracked and discussed SaaS and subscription metric. Churn can measure lost customers, contracts, ARR, MRR, GAAP revenue, contract value, or bookings. Churn is typically expressed as a rate or a ratio…

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