Was bedeutet „Churn (Churn Rate)“

Definition

The Churn Rate represents the percentage of customers who discontinue their relationship with a company or terminate their license agreements.

Explanation

The Churn Rate is a critical metric in SaaS and subscription-based businesses. It measures the percentage of customers or the proportion of recurring revenue (Revenue Churn) lost within a specific period, typically due to contract cancellations or the non-renewal of licenses. A low Churn Rate is crucial for achieving sustainable and profitable long-term growth.