Churn Rate

Churn Rate, also known as attrition rate, is the annual or monthly percentage rate at which customers stop subscribing to a service, or employees leave a job. In a business context, particularly for subscription-based models (SaaS, streaming services, memberships), customer churn refers to the proportion of customers who cancel their subscriptions or cease to be active users within a given period. It's a critical indicator of customer satisfaction, product value, and the effectiveness of retention strategies, directly impacting a company's MRR and ARR growth.