Glossary / Churn
Churn
Churn is the rate at which customers or revenue leave over a period — the leak a subscription business has to keep refilling, and the number that decides whether MRR is real.
For any recurring-revenue business, churn is destiny. Low churn means new customers compound into growth; high churn means the business runs to stand still, and its MRR is worth far less than the headline.
Read churn over several months, not one, and separate customer churn from revenue churn — a business can lose small customers while net revenue grows, or the reverse.
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