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

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