Churn Rate

Churn Rate is the percentage of users who stop using a product or service over a specific period. It is a key metric for measuring customer retention and satisfaction. A high churn rate often signals issues with the user experience, product value, or engagement strategies, while a low churn rate suggests that users are satisfied and remain loyal.

Churn rate is the metric that determines whether your SaaS business is viable. A product with great acquisition but 10% monthly churn is a leaky bucket — you're growing revenue on paper while destroying it underneath. For founders, a rising churn rate is the earliest warning sign that something in the product experience, onboarding, or value delivery is broken before it shows up in revenue.

Intercom discovered that users who didn't send their first message within 24 hours of signup churned at 3x the rate of those who did — leading them to redesign onboarding entirely around getting that first message sent as quickly as possible.