Churn Rate
Detailed Explanation
Churn Rate shows the percentage of customers lost over a specific period. Low churn is crucial for customer loyalty and growth. For SaaS companies, reducing churn is often more cost-effective than acquiring new customers.
Example
You have 200 customers and 20 cancel their subscription → Churn Rate = 20 / 200 = 10% customer churn.
Why Churn Rate Matters
Churn directly impacts your growth rate and revenue. Even with strong new customer acquisition, high churn creates a "leaky bucket" problem where you're constantly losing revenue. Best-in-class SaaS companies maintain monthly churn rates below 5%. Reducing churn by even 1-2% can dramatically improve your bottom line.
Churn Rate in B2B outbound
Churned and current customers should never receive a cold prospecting email from your own team. Keep them out of every outbound list by company domain, and check again at launch, because a deal can close between the day a list is built and the day it sends. TechSales keeps HubSpot customers and contacts on open deals out of cold campaigns.