Back to Metrics Library

Churn

Churned recurring revenue (ARR or MRR) is the recurring revenue lost due to customers ending their contracts. While some churn is inevitable, mitigating churn is an important part of having a healthy SaaS business. If you are seeing elevated churn rates, it’s important to understand why: try using customer segments to understand which have the highest churn rates, and seek to understand if there are product gaps they need to be filled, or if you should change your sales focus to better training customers. 

Churn = previous period ARR from customers who discontinued their subscription in the current period

Growth Rates: Period over Period, Year over Year, CMGR

Settings: Segments, Date Range, Date Aggregation, Trailing Period, Revenue Type