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Understanding What is Churn: Your Essential Guide to Retention Metrics

User Pilot

What is churn ? Simply put, churn measures how many customers businesses are losing over time — a central concern for companies dependent on customer retention , like those in the SaaS industry. Try Userpilot and Take Your Customer Satisfaction to the Next Level Get a Demo 14 Day Trial No Credit Card Required What is customer churn?

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Dear SaaStr: What are Some Tricks Software Companies Use to Manipulate Churn Metrics?

SaaStr

Q: What are some tricks software companies use to manipulate churn metrics? Churn” is a surprisingly imprecise term. Some ways saas companies “manipulate” churn, which may be 100% legitimate in some cases: Not counting churn until after 90 days. If a customer churns in a week, why count them? Every quarter.

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Two SaaS Metrics That Actually Don’t Matter That Much in the Earliest Days: Absolute Churn and Sales Cycles

SaaStr

Metrics are critical in SaaS, and you need to track them fastidiously. But it’s also important to focus on the right metrics, at the right stage, and not obsess about the less important ones at the wrong times. >> Let’s Start with Churn. Absolutely, getting your churn trending downward is important.

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The Three SaaS Metrics That Matter in 2024 with SaaStr Founder and CEO Jason Lemkin

SaaStr

What are the three most under-discussed metrics on social media, with VCs, and especially with founders? They went from on-prem to a SaaS model and may flatter their metrics a little by confusing them. Key Takeaways Track your net new customers after churn. This should be your North Star metric. They’re all at $2.5B

Metrics 237
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I Was Wrong. NPS is A Great Core Metric.

SaaStr

It created a lot of discussions and was more controversial then — that NPS was a great core metric. Back then, I wrote that when I was a SaaS founder, I thought Net Promoter Score (“NPS”) was a somewhat dumb, Big Company metric. NPS isn’t tied to upsells, churn, or revenue. NPS is A Great Core Metric.

Metrics 275
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If Nothing Else – Segment Churn

SaaStr

Everyone seemingly became an expert in churn. Your churn rate should be 0.123909% per month. Churn is not a GAAP metric. In fact, Christoph Janz had a great post a ways back noting how even public companies define churn differently. But they excluded churn in the first 60 days. It should be net negative.

Churn 257
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Big Companies Don’t Churn. They Quit You.

SaaStr

Churn” is a term we all use in SaaS as a core metric, but its roots, as near as I remember and can tell, come from our B2C colleagues. Folks churn out of their Verizon plan, their Netflix subscription, etc. And sometimes they’ll churn even just for a modestly better deal. the dynamics are similar.

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