SaaS Marketing
Churn Rate
Quick definition
Churn rate is the percentage of customers (logo churn) or revenue (revenue churn) lost in a given period.
Logo churn measures customer attrition; revenue churn measures the dollar impact. Best-in-class B2B SaaS targets gross revenue churn below 1% monthly (12% annually).
Why Churn Rate matters
Churn is the silent killer of SaaS growth. Cutting churn by even 1–2 points compounds dramatically over time — often producing more value than equivalent acquisition gains.
How Churn Rate works in practice
Reduce churn through better onboarding, customer success, product stickiness, and proactive intervention on at-risk accounts.
Best practices
- Measure both logo and revenue churn separately.
- Segment churn by ICP, plan, and cohort.
- Identify churn drivers via exit interviews and product analytics.
- Invest in onboarding — most churn happens in the first 90 days.