Metrics
What Is a Good Churn Rate?
Churn benchmarks per segment. What "good" looks like for consumer subscription, B2B SaaS, and enterprise.
Churn Types
3 kinds of churn
- Revenue churn: % of MRR/ARR lost per month/year
- Logo churn: % of customer accounts lost
- User churn: % of individual users lost (for team plans)
Benchmarks Per Segment
Monthly churn ranges
- Consumer subscription: 3-8% monthly (35-70% annual)
- SMB SaaS: 3-7% monthly (30-60% annual)
- Mid-market SaaS: 1-3% monthly (12-30% annual)
- Enterprise SaaS: 0.5-1.5% monthly (6-18% annual)
- Best-in-class SaaS: <0.5% monthly = 'negative net churn' with expansion
Diagnosis: Where the Churn Is Coming From
Segments to check
- Cohort churn: are recent cohorts churning faster than old ones?
- Segment churn: which user segment churns hardest?
- Feature usage: are churners using fewer features?
- Time to churn: are they leaving in first 7 days or after 90?
What Actually Reduces Churn
Levers ranked
- Better activation (fixes churn at the source)
- Habit-forming loops (users who form the habit stay)
- Proactive customer success outreach for at-risk accounts
- Product changes that make switching costs high (data, network effects)
- Refund + save-desk playbook for the last 10% who ask to cancel
Related Resources
Master These with a Coach
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