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Digital marketing

Churn (Attrition rate)

Definition

Percentage of clients who stop being clients over a given period. A critical KPI for recurring service providers and SaaS: high churn cancels out acquisition.

Detailed explanation

Churn measures loss. Two calculations: client churn (% of clients lost) and revenue churn (% of MRR lost — worse, because the largest clients often leave first). A WordPress developer with 30 maintenance clients and 3 cancellations per year = 10% churn. To stay stable, they must gain 3 new clients per year — just to stand still. A churn above 15%/year signals a product problem (disappointing delivery, slow support, low perceived value). Reduction strategies: careful onboarding (day 7 is critical), structured monthly reports, proactive upgrades, quarterly relationship touch-points.

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