How to Calculate Churn Rate: 4 Churn Rate Formulas

Churn rate, also known as attrition rate, is a business metric that calculates the rate at which customers leave a product over a given period of time. Customer ... WebinarExpandingyourSaaSbusinessinternationally?Don'tmissourwebinarwithLokalise  RegisternowHowtocalculate(andreduce)yourchurnrateToooften,SaaSbusinessesarefailingtoaccuratelycalculatetheirchurnrate-orevenconsideritatall.Wetellyouhowtocalculatechurnproperly,howimportantthemetricisforyourbusiness,andhowtoreduceit.Whatischurnrate?ChurnrateformulaWhychurnrateishardtounderstand4waystocalculatechurnrate1.TheSimpleWay2.TheAdjustedWay3.ThePredictiveWay4.TheShopifyWayThingstoconsiderSimplifyyourchurnratecalculationExtrathingstoconsiderChurnrateFAQsShareAtitscore,customerchurnrateisasupersimpleconcept:Yourchurnrateisthepercentageofyourcustomersthatleaveyourserviceoveragivenperiod.Yet,inlookingathundredsofdifferentSaaScompanies,we'vediscoveredthatthere'sawealthofcomplexitybehindthisseeminglysimplecalculation.Somenecessary-breakingdownyourchurnintosegments,cohorts,etc.Someinvented-countingtrialusersinyourchurn,notproperlycountingepisodic/seasonalcustomers,etc.Infact, retentionrates havebecomesocomplicated,atlastcount,therewere43differentwayspublicSaaScompanieswereaccountingforthemetric.Unfortunately,allofthiscomplexityendsupputtingusdownarabbitholeofwastedtimeandhiddenopportunitybecauseyouendupspendingmoretimetryingtounderstandandqualifychurnrate,ratherthanactuallyusingthemetrictobuildyourbusinessanddrive revenuegrowth.Aboveallelse,youneedtounderstandthefoundationofyourcustomerchurnrateandtheaxesthroughwhichyouandyourteamcanimpactthatnumber.Todothis,youcan'tmakeyourchurnratecalculationsoverlycomplicated,orthey'lllosetheirimpact.Let'sexplorethisconceptbyfirstwalkingthroughtheelementsofchurn,includingwhatchurnisspecificallyusedfor,beforewalkingthroughanumberofwaystocalculatechurnrate,andwhyyoushouldfundamentallykeepitsimple.Whatischurnrate? Churnrate,alsoknownasattritionrate,isabusinessmetricthatcalculatestherateatwhichcustomersleaveaproductoveragivenperiodoftime.Customerchurnisvitaltounderstandthehealthandstickinessofabusiness,asahighchurnratecausesahighrevenuechurnrateandhurtsyourbusiness'bottomline.Thehigherthechurnrate,themorecustomersyourbusinessislosing.ChurnrateformulaThechurnrateformulacanbecalculatedasthenumberofchurneddividedbythetotalnumberofcustomerswherethe numberofchurnedcustomers ishowmanypeoplehaveleftyourserviceovertheperiodoutofthe totalnumberofcustomers youhadduringtheperiod.7reasonswhychurnratecanbehardtocalculateandunderstandCalculatingchurnratelooksprettystraightforward,but(1)howexactlywedefinethosetwonumberscangreatlyaffecttheoutput,and(2)business-dependentexternalfactorsmaywreakhavoconourunderstandingofwhatnumbercomesout.RelatedChurn&retentionCustomerchurnanalysis:OneofSaaS’mostimportantprocesses1.CountingcustomersiscomplicatedThetotalnumberofcustomersforaperiod,say,1month,isn’tawell-definedconceptbecausethatnumberwillchangeduringthemonthduetonewsignupsandcancellations.Foranygivenmonth,youhavethreekindsofcustomers:Thosethatsigneduppriortothemonth.Thesecustomerswillcomeupforrenewalinthecurrentmonth.Newcustomersduringthemonth.Newlychurnedcustomersduringthemonth.If,forinstance,yourgroupofnewsignupsislargeinproportiontotheexistingcustomerbase,thatcandistortyourchurnratecalculationinanumberofways:Thenumberyouuseforthe“totalnumberofcustomers”inthedenominatorwillbemuchdifferentonday1thanitisonthelastdayofthemonth.Thiswillmeanthatnomatterwhatnumberyouuseforthe“totalnumberofcustomers”,itwilleitherbeprettydistantfromtheday1number,theday30number,orboth.Newcustomerstypicallychurnatahigherratethancustomersthathavestuckaroundforabit.Thatmeansthatifyourcompanyisgrowing,yourchurnratewillskewhigherthanitreallyis.2.ThemomentofchurnhasmultipledefinitionsPeopledefinethemomentofchurnintwoways:whenthesubscriptionendsandrenewaldoesn’thappen,oratthemomentofthecancellation.We’vewrittenabouthowwhenacustomercancels, theyhaven’tchurnedyet.Customersdon’tchurnuntiltheendoftheirsubscriptionperiodarrivesandtheydon’trenew,becausethey’vealreadypaidupuntiltheendoftheir subscriptionterm.Ifthey’veonlycanceled,youstillhaveachancetowinthembackbeforetheirsubscriptionends.Bythatdefinition,it’snotactuallypossiblefornewsignupstochurnintheirfirstmonth,andthisdoesawaywiththeissueofhownewcustomergrowthcandistortthechurnratecalculation.Newsignupswouldn’tbeincludedinchurnorthetotalnumberofcustomersfortheirfirstmonth.Somecallthemomentofcancellationchurnsothattheycanhavethemostcurrentchurnnumberpossible.Theissueisthatchurnisfundamentallyalaggingindicatoranditshouldn’tnecessarilybelookedatinreal-time.RelatedChurn&retentionWhatiscustomerattrition&howtoreduceyourclientattritionrate3.SamplesizescanbemisleadingWhenwelookatachurnrateof,say,10%,we’reimplyingthata churnrateof1/10isequivalenttoachurnof1,000/10,000.Earlyonandunderconditionsofhypergrowth,ourcalculatedchurnrateisjustasmuchaproductofour smallsamplesize asitisanumberthat’srepresentativeorpredictiveofhowwellourserviceretainscustomers.Wedon’thavemuchdataintermsofthenumberofcohortsandhowthecohortsbehaveovertime.Thisalonecancausewildfluctuationsthatmakeitdifficulttocomparechurnratesonamonthlybasis.Undertheseconditions,it’simportanttorecognizethelimitationsoftheinferencesyoucandrawfromyourchurnrate. 4.TimeframesmightpaintdifferentpicturesYoumaybelookingatcustomerchurnrateoveraweek,month,quarter,oryear.Also,youwantyourchurnratecalculationtoberobustwithrespecttothetimeframechosen.Youdon’twantyourcalculationtogofromgenerallycorrecttowildlyincorrectwhenyoumovefromamonthlyframetoaquarterlyframe. 5.Customersegmentschurndifferently Youmayhaveaconsumerplanandthenanenterpriseplan.They’regoingtohavewildlydifferentchurnrates,perhapswithadifferenceasgreatas15%churnmonthlyvs.0%.Anaggregatednumberdissolvesthedifferencesbetweenyourcustomers,leadingyoutomisunderstandyourchurnnumberifyoujusttakeitatfacevalue.Forinstance,growthinahigherchurncustomersegmentcouldbemistakenforanincreasedchurnrateoverall,whichcouldleadyoudownthewrongpathoftryingtofixanon-existentchurnproblem.RelatedChurn&retentionRetentionanalysis:6stepstoanalyze&reportoncustomerretention6.SeasonalityimpactschurnrateIfyourbusinessvariesbasedontheseason,yourchurnratemayshowchangesthatcorrespondwiththeseasonalityofyourbusinessthatmightbehardtounderstanduntilyou’vegonethroughseveralcycles.7.ConsistencyinchurncalculationmethodologySeveralotherexternalfactorsarelikelytobebusiness-specific.What’simportantforhowyoucalculatechurnrateisthatyouapplythecalculationconsistentlysothatyoucancomparenotonlyfrommonthtomonthbutyeartoyearasyougrow.4waystocalculateyourchurnrateTocalculateyourchurnrate,dividechurnedcustomersoveraperiodoftime bythenumberofcustomersyouhadatthestartofthatperiod.Whileoverlysimplistic,thisallowsyoutofocusonchurnbycohortandanalyzethecause— insteadofdebatingbetweenoverlycomplexmethodstoanalyzechurn.Butthat’sjustthestart.SteveNoble,adataspecialistatShopify,outlined4basicwaystocalculatechurnrate:(1)Simple,(2)Adjusted,(3)Predictiveand(4)themethodheultimatelysettledon.We’llwalkyouthroughtheseincreasinglycomplexchurnratecalculations.You’llseethesameconstantsthroughouttheseexamples:ChurnedCustomers isthenumberofcustomersthatchurnedinthetimewindow.n isthenumberofdaysinyourchosentimeframe.Whencalculatingoveramonth, n = 28, 29, 30 or 31.Customers isalistofthenumbersofcustomersonanygivenday i,1through n. Forexample, Customers_1 isthetotalnumberofcustomersyouhadonthefirstdayofthewindow.Simplechurnrateformula1.TheSimpleWayThesimplestwaytocalculatechurnrateisbydividingthetotalnumberofchurnedcustomersovertheperiodbythenumberofcustomersyouhadonthefirstdayofthespecificperiod. Thegood&thebadThemainpro'ofthesimpleversionofcalculatingchurnrateisitssimplicity.The churnrateformula iseasilyunderstandableandquicklycalculable.Youonlyneedtoknow2quicknumberstofigureoutyourchurnrateforthemonth,andallyouneedisthosetwonumbersforeachmonthtobeabletocomparemonth-to-month churn.Theproblemwiththissimplechurnratecalculationisthatithasahardtimedealingwithsignificantgrowth.Whenyouhavealotofgrowth,bothyourchurnandtotalcustomerscangoup.Ifyourtotalnumberofcustomersgoesupmore,yourchurnratewillgodown,evenwhenyouhavemorecustomerschurningoutofyourproductthanthepreviousmonth.Thisisn’tanissueifyou’reanestablishedcompanywithasignificantcustomerbaseandstablegrowthmonthonmonth.Butifyou’reanewcompanywithsubstantialnewcustomerseachmonth,thiscanleadtoastrangeinterpretationwhereyoucanlosemore at-riskcustomers permonth,butyourratewillgetbetter. ExampleTable1Table1isanexamplefromtheShopifypostillustratingtheshortcomingsoftheSimpleWay.Tocalculatechurnrate,beginwiththenumberof customersatthebeginningofAugust(10,000).Inthisexample,youlose500(5%)ofthesecustomers,but acquire5,000newcustomersthroughoutthemonth,ofwhich125(2.5%)churnout.Thisgivesyouachurnrateof6.25%forAugust.625/10,000=0.0625You'rethenstartingSeptemberwith14,375customers.Thismonth,youseethesamebehavior,with5%(719)ofexistinguserschurning,5,000newcustomersjoining,and2.5%(125)ofthosecustomerschurning.YoursimplechurnrateforSeptembercomesinas5.87%.844/14,375=0.0587Wait,whathappened?You’veseenthesamebehaviorinbothmonths,5%ofexistingcustomersand2.5%ofnewcustomerschurning,buttheoutcomeistwocompletelydifferentchurnrates.Itlookslikeyourchurnratehasgonedown,buttheunderlyingbehaviorhasremainedthesame.Yourhighgrowthhasdistortedyourcalculation.InAugust,125churnedcustomerswereaddedtothenumerator,butthe5,000newcustomersthatjoinedinAugustdidn'tgetaddedtothedenominator—whichmeansthatthechurnrateisartificiallyhigh.Inthefollowingmonths,thegrowthislessproportionallytotheexistingcustomercount,sotheeffectlessens.Adjustedchurnrateformula2.TheAdjustedWayToaccountforsignificantmonthlygrowth,wecantakethemidpointofthecustomercountforthemonth,ratherthanusingitsvalueonthe1stofthemonth.Herewe’redividingthenumberofchurnedcustomersbyanadjustedaverageofthenumberofcustomersthroughoutthewindow. Thegood&thebadThisapproachmanagestodealwiththegrowthissuebynormalizingchangesintotalcustomersoverthetimewindow.Nowyouhaveamorestableplatformtobaseyourchurnrateon,withthetimewindowforyourtotalcustomersthesameasyourtimewindowforchurn.However,thoughthisapproachtochurnratecalculationdoesdealwiththegrowthissue,itfailstoscalewithdifferenttimewindows.Usingthesamecalculationandthesamedata,you’dgetverydifferentanswersfordaily,weekly,monthly,andquarterlychurn.ExampleBuildingonthedataabove,weaddthefiguresforOctober(Table2).Table2Nowweseethechurnrateasthesame,evenwithadifferentnumberofcustomersatthebeginningofthemonth.Augustbecomes: 625/12,187.5=0.0513Septemberbecomes: 844/16,453=0.0513Octoberis: 1052/20,505=0.0513Quarter: 2521/16,239.5=0.1552Bingo!Problemsolved.Wecanallgohomeforteaandmedals.Notquitesofast.Themainproblemwiththisapproachtochurnratecalculationisthatitmakesassumptionsaboutthedata.Ifyoucalculatethisover3months,youcomeoutwithachurnrateof15.52%.Dividethisacrossthe3months,andyouget5.17%,veryclosetotheindividualmonthlycustomerchurnrates.Sofarsogood.Butwhatifyoudon’thaveexactlythesamenumbersacrosseachmonth?Let’smakeAugustabadmonthforourimaginaryB2BSaaScompany.Thistime,itonlygets100newcustomers,2ofwhichchurnout.Table3Thebehavioristhesameintermsofchurn(5%ofexistingcustomersand~2.5%ofnewcustomers),andwhencalculatedindividually,eachmonthshowsthesamechurnrateof5.13%.Butwhencalculatedasaquarter,yougeta3-monthchurnrateof13.72%,which,whendividedacrosseachmonth,is4.57%(seeTable3).August: 502/9799=0.0513September: 605/11,795.5=0.0513October: 825/16,080.5=0.0513Quarter: 1932/14,084=0.1371Nowourmonthlychurnratesnolongertallywithourquarterlychurnrate,eventhoughtheyusethesamedata.Thisisbecausewe’vechangedthetimewindowwe’recalculating.Thisapproachassumesthatchurnisspreadevenlywithinthetimeperiod,withalineardistribution.Butchurnisneverthishelpful.Agoodchurnrateratioshouldexpandorcontractwellwiththelengthoftimeitmeasures,andstilldelivercomparableresults.3.ThePredictiveWayAnygoodchurnratecalculationshouldgivesomeactionableadvice.Inthisexample,Shopifyhastriedtoincorporateapredictiveelementintotheequation.They’retryingtodetermineaweightedaveragechurnrate,sothat rate*customers willpredictthelikelychurnrateonanygivenday.ThepredictivechurnrateformulaInactiveCustomers isanarrayofhowmanycustomersactiveondayiareinactiveondayi+n,i.e.onemonthlater.Ifyouhave1000customersonSeptember1,youthenlookforwardintimetoseehowmanyofthose1000havechurnedonOctober1.Yousumthatup,thendividebythetotalcustomersinSeptember.Thegood&thebadItseemsawesometobeabletopredictchurn.Havingaweightthatyoucanmultiplywithcustomerstogetpredictedchurnwouldbegreatforplanningyourfinances.Whodoesn’twanttodothat?Well,youhaveprobablynoticedacriticalproblemwiththisapproach:“...youthenlookforwardintime...”RelatedChurn&retentionHowtopredictcustomerchurnandstopitinitstracksThisrequirestwomonthsofdatatorunonemonth’scalculation.Todetermineyourchurnrateforthismonth,youhavetowaituntiltheendofnextmonth.Thatisn’tgoodforametricthatissupposedtokeepyouup-to-dateonyourcompany’ssuccess.IfyouhaveanumberofaccountscanceledinSeptember,youwon’thavethisinformationuntilOctober.TheflipofthisisthatwhenyoudogettotheendofOctoberandhaveachurnrate,it’snowfromamonthago. It’snotcurrent.Youcannolongerreportchurnratestoyouremployeesforthepriormonth,youareinsteadtellingthemwhathappenedamonthago.Thisapproachhasallthesameproblemsas rollingmetrics,andyouknowyoushouldstayawayfromthose.Calculationsin SaaSmetrics aresupposedtotakeallyourdataandtransformitintoeasilyunderstandable,actionablenumbers.Thischurnratecalculationmakesyournumbersmorecomplicatedandlessactionable.4.TheShopifyWayInsteadofroughlytakingtheaverageofthefirstdayandlastdayofthemonthaswedowiththeAdjustedWay,wecantaketheaverageofeverydayinthemonthtogetamoreaccuratechurnratecalculation.TheShopifychurnrateformulaYoudivideyournumberchurnedbytheaverageofyourcustomercountbetweendays1andn. Thegood&thebadThisdealswiththeissuesthatplaguetheothervariations.Youcanuseitinperiodsofhighgrowth,anditscalesnicelyacrossdifferenttimewindows.Youcanalsouseitinatimelymanner,gettinganup-to-datechurnrate.Buttherearealwaysgoingtobevariationsinyournumbersthatasinglecalculationcan’taccountfor:newercustomerschurningatahigherratetheoldercustomers,differencesincohorts,inplans,insizeofaccounts.Noneofthesearecapturedinthischurnrateformula,andbyusingit,companiescouldhaveafalsesenseofsecuritythatthenumbertheygeteachday,week,month,orquarteristhewholestoryoftheirchurn. WhyyoushouldsimplifyyourchurnratecalculationAsNoahLorangatBasecamppointsout, SaaSanalyticsshouldn’tberocketscience.Oneofhis“threesecrets”isto“makeiteasy.”RelatedMetrics&performanceHowtocalculateCACandyourCAC/LTVratiocorrectlyWhenyoureducecomplexityonyourchurnratecalculation,yougetthefollowingbenefits,whichcan’tbeunderestimated.It’seasilyunderstandable—anyoneinyourorganizationcanunderstandthatnumber.Thisiscriticalforakeymetric.Ifnooneunderstandsyournumber,theycan’tactonit.It’seasilycomparable—themorecomplexityyouaddandthemorecasesyouattempttoaccountfor,theharderitwillbetocompareyourchurnratecalculationacrossdifferentperiods.Youcreateconsistencybytakingthesimpleandstraightforwardpath.Itservesasastartingpointfordeeperanalysis—you’reabletoeasilycomprehendwhatyournumberaccountsfor,whatitdoesn’t,andwhereyouneedtodigintolearnmore.Withmorecomplexcalculations,yourfirststepwillberemindingyourselfhowtocalculatechurnrate.That’swhyweatPaddleusetheSimpleWaywithamonthlytimewindow.Wekeepthechurnrateformulasimplesothatyoucanspendyourtimetakingadeeperdiveintothenumber,analyzingchurnbycohort,andsoon—notspendingittryingtocalculatehowwearrivedatournumber.Thischurnratecalculationmethodhasworkedforthousandsofourcustomers,anditcanworkforyourB2BSaaScompany(oranyothersubscriptionbusiness)aswell.Allofyourtop-linemetricsarejustheadlines.They’renotthestory.Thestoryisburieddeepwithinthenumbers.Youneedtobelookingin-depthatthehowandwhyofyourchurnratherthantryingtoaccountforeveryvariablewithinyourchurnratecalculation.Yourdeepdiveintothenumbersiswhereyou’llfindoutaboutyourbusiness,andhowyou’llbeabletomakeactionabledecisionstoimprovecustomerretentionrate.FourextrathingstoconsiderwhencalculatingchurnWhenyoudogoaheadanddigintothenumbers,therearesomethingstobearinmind.RelatedChurn&retentionHowB2BandB2Ccompaniessolvechurndifferently1)ThedifferencesbetweenB2BvsB2CB2BandB2Ccompaniesdealwithchurnslightlydifferently,mainlydowntothefacttheirtargetaudiences(andtheirbehaviors)differ:B2BSaaSbusinessesoftenhaveafarmorenichetargetaudienceandbusinessmodel,normallywithstrongspecificationsinmind.Theytypicallyexperiencearelativelylowchurnrate,duetofactorssuchashigherprices,specializedaccountingdepartmentsorservicestodealwithB2Bchurn,andannualsubscriptionsTheworldofB2Cisfarbroadermeaningitcanbehardertoattain(andretain)eachcustomer’sattention,particularlywithallthecompetitioninsimilarmarkets. TheytypicallyexperienceahigherchurnratethanB2B,andgreatercompetitionwithintheirindustries.2)NotallchurnisintentionalSometimes,churnhasnothingtodowithhowhappyyourcustomeriswithyourproductorservice. Theymightbesattheremindingtheirownbusiness,unknowinglyhavingtheircarddeclined.Thiscouldbethankstoweaknessesinyourpaymentsinfrastructurecausing poorpaymentrouting,orsomethingasmundaneasthecustomer’scardhavingexpired. Thisisknownasinvoluntary(passive)churn.Unlikevoluntary(active)churn,customerswhochurninvoluntarilyaren’tlookingtocanceltheirsubscription;theywouldhavestayed!Sounlessyourecoverthem,it’ssimplymoneydownthedrain. It’ssoimportantthatyoufocusonbothareasofchurnifyouwantyourbusinesstosucceed-whichiswhateverybusinessownerwants,right?RelatedChurn&retention3waystoreducevoluntaryandinvoluntarychurn(thatactuallywork)3)Pre-churnvspost-churnYoualsoneedtoclassifyyourchurnstrategiesbyconsideringhowtore-engageusersbasedon pre-churnevents and post-churnevents. Saywhat? Well,ideallyyouwanttocatchthecustomersthatareeitherwantingtocancelorinvoluntarilycancellingthroughpaymentfailuresina pre-churn scenario.Thatway,it’seasiertoavoidorattheleastreducethechancesofthemleaving. Whetheryoubutterupyournear-voluntarychurnerswithtopcustomerserviceandsupporttokeepthemhappy,orwhetheryoumakesureyourpaymentacceptanceisonfleekforallusers,makesureyougetonitbeforethesubscriptionrenewaldate. But,allisnotnecessarilylostifyou’reabitlateinthegameandthechurnhasalreadyhappened.Youcanstillshootyourshotwithcancellationoffersortheopportunitytopausepaymentsforthosethatneedalittlepush(back)intherightdirection.Asforinvoluntarychurners,youcanlookinto paymentrecoveryoptions suchasaccountupdatersandpaymentdunningsoyoudon’tmissoutonthatrevenue. 4)Churnratesvarybyindustry,andthat’sokayKnowthatalloftheabovedependsonthebusinessandserviceyou’reoffering.Somebusinesseswillhaveahigherchurnratethanothersandbejustassuccessful,andsomewillhavetotacklechurnindifferentways. The ‘average’churnrateforSaaSbusinesses isaround5%-andwe’dliketostresstheword‘average’alittlemore.Av-er-age. Thiscanbecomparedtoeducationservices,forexample.Theaverage(yes,average)churnrateforthisfieldis justunder10%.That’sdowntothefactthattheindustryisverymuchseasonal–churnisaffectedbytheschoolyear.While10%soundshigh,intheeducationindustryit’sconsideredhealthy.  Thatsaid,ahighchurnratecanoftenbeastrongindicatorthatsomethingneedstochange.ChurnrateFAQsChurnisatrickysubject,butwegetmanyofthesamequestionsonchurnrateagainandagain.Herearesomeofthemostaskedquestions,andouranswersforthem. Whyischurnsoimportant?Churnisasuperimportantmetricforbusinesses,becauseitcanpointyoutowhat’sgoingright,what’snot-so-right,andwhat’sverywrongwithyourbusinessmodelanditsprocesses.Alowchurnrateinasubscriptionbusinessmeanscustomersarehappywiththevalueyou’redelivering.Ahighchurnrate,ontheotherhand,couldmeanthatyou’refailingtofulfilthepromisesyoumadetoyourcustomers.Thefasteracustomerchurns,thelessamountofrevenueyouwillhaveearnedfromthem.Ifacustomerchurnsquickly,youmayfindthatyouspentmoreonacquiringtheminthefirstplacethantheyendedupspendingwithyou.Notideal.Whatisagoodchurnrate?Accordingtoourchurnratestudies,averagechurnratesareeverywherefrom2%-8%ofMRR.Therefore,achurnrateatthelowend(2%)wouldbeconsidered“good”.Bycompanyage,10+-year-oldcompanieshavea2-4%churn,whereasyoungercompaniesrangefrom4%-24%. Whatisanegativechurnrate?Anegativechurnrateoccurswhenaddedrevenuefromnewcustomers(expansionrevenue)surpasseslostrevenuefromchurnedcustomers.Anegativechurnrateisusuallycausedbyactivitiessuchas=upgrades,serviceoptions,add-ons,etc. Doeschurnrateaffectretention?Yes,thechurnrateistheinverseofretention.Whencustomersarenotretained,theychurnbydefault.Understandyourcustomersbetterusingthis cohortanalysisexceltemplate. HowcanItrackchurn?Serviceslike ProfitWellMetrics and ProfitWellRetain helpyoutrackchurnanddeploymeanstomanageand reduceChurnthruintegration.JoinourcommunityofSaaSleadersSignuptogetearlyaccesstoourlatestresourcesandinsightsBysubscribing,IagreetoreceivethePaddlenewsletter.Unsubscribeatanytime.RelatedreadingBacktoresourcesMetrics&performanceTimetovalue:6Waystotrack,measure,andreduceTTVtobeatchurnChurn&retentionReducecustomerchurnin5stepswithbullet-proofretentionPricingPricinganalytics:Definition,metrics,andwhyyouneedit