Churn Rate

Churn Rate is the percentage of customers who stop using your product or cancel their subscription over a given period. It’s a critical SaaS metric that reflects customer satisfaction, product value, and retention strategy effectiveness.

Reducing churn is often more cost-effective than acquiring new users, making it a top priority for growth-stage SaaS companies.

Example:

If you had 200 subscribers at the start of the month and lost 10 by the end, your churn rate is 5%.

Other terms

Conversion Rate

Conversion Rate tracks the percentage of visitors who complete a goal, like signing up or purchasing—key to measuring marketing effectiveness.

Call-to-Action (CTA)

A Call-to-Action (CTA) is a prompt that encourages users to take a specific action, such as downloading a guide or booking a demo.

Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV), or LTV, estimates how much revenue a business earns from a customer throughout the entire relationship.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is the total expense of winning a customer, including marketing and sales efforts.

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