What is customer churn?
Customer churn is customers leaving your product in a period. Measure logo churn as accounts lost and revenue churn as MRR lost. Split voluntary, involuntary, and silent churn.
| Type | Definition | Example | Prevention |
|---|---|---|---|
| Voluntary | Active cancellation | Found competitor or no longer needs product | Win-back outreach |
| Involuntary | Payment failure | Expired card or billing issue | Dunning management |
| Silent | Gradual disengagement | Usage declines without complaints | Behavioral health scoring |
Track logo churn and revenue churn every month. They diverge when large accounts leave or small accounts exit.
Frequently asked questions
What is the difference between customer churn and revenue churn?
Customer churn counts accounts. Revenue churn counts MRR lost. You can lose few logos but a lot of revenue if large accounts leave, or the opposite with small accounts.
What is a good churn rate for SaaS?
Depends on segment. Rough annual guides: under 5% enterprise, under 7% mid-market, under 10% SMB, higher for PLG self-serve. Compare to your motion and price point, not a generic average.
What is involuntary churn?
Leaves from payment failure, expired cards, or billing errors, not a deliberate cancel. Often 20-40% of total churn. Usually the easiest to reduce with dunning and card-update flows.