Finding customers and growing
Churn rate
Churn rate is the share of customers, or of revenue, that you lose in a set period, usually counted per month or per year.
Also called churn
Customer churn, also called logo churn, counts accounts that cancel. Revenue churn counts the money lost, which can differ a lot from customer churn. A business can lose few accounts and still lose a large share of revenue if its biggest customers leave.
When this shows up
Example, not a real founder: new sign-ups grow every month, and the total customer count looks healthy. Underneath, almost as many customers cancel each month as join. The growth was hiding the leak.
What to do next
Count the paying customers you had at the start of last month and how many of those cancelled by the end. Next to each cancellation, write the reason if you know it.
Go deeper
Flat for months. Should you pivot or keep pushing?
A read on whether people find, use, return to and pay for your product, or a note when there is too little to judge.
Read the guide