Share of customers or revenue lost over a period. Often the largest growth lever once new acquisition steadies.
Churn rate measures the loss of customers (customer churn) or recurring revenue (revenue churn) across a period. Voluntary churn comes from customers who choose to leave. Involuntary churn comes from failed payments. Net revenue churn includes expansion from remaining customers.
A subscription business with 5% monthly churn has to replace 60% of its base each year just to stay flat. Lowering churn 1-2 points usually beats most acquisition spend. Splitting voluntary from involuntary tells you whether to fix product or payments.
Lifecycle events drive churn metrics. Recovery rules retry failed payments, route to alternate methods, and trigger save offers. Price-change consent reduces downgrade churn. Reports split by voluntary, involuntary, and downgrade reasons.
