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Few metrics are so indicative of business health like churn and retention. For SaaS, those are the metrics: as fundamental as fundamental metrics go.
In subscription-based businesses, churn rate shows the percentage of customers lost, while customer retention rate reveals how many stay. A high churn rate can point to product or satisfaction issues, while a high retention rate signals loyalty and strong product-market fit. Tracking both (whether monthly or annually) helps balance acquisition, reduce revenue churn rate, and sustain growth.
The truth is, that doing that is easier said than done. In this article, let's try to figure out and understand how to measure both of these metrics.
Few metrics are so indicative of business health like churn and retention. For SaaS, those are the metrics: as fundamental as fundamental metrics go.
In subscription-based businesses, churn rate shows the percentage of customers lost, while customer retention rate reveals how many stay. A high churn rate can point to product or satisfaction issues, while a high retention rate signals loyalty and strong product-market fit. Tracking both (whether monthly or annually) helps balance acquisition, reduce revenue churn rate, and sustain growth.
The truth is, that doing that is easier said than done. In this article, let's try to figure out and understand how to measure both of these metrics.
