Churn
The rate at which customers stop using your product over a period (typically monthly or annual).
Last updated: 2026-05-04
Definition
Monthly churn: % of customers who stopped this month. Annual churn = 1 - (1 - monthly_churn)^12. SaaS healthy benchmarks: <2% monthly for SMB, <0.5% monthly for enterprise. LTV depends inversely on churn; reducing churn 1% has the same revenue effect as growing acquisition by ~30%.
How it applies in India
Indian SaaS churn is typically 1.5-2× US baseline due to lower per-account ACV + higher price sensitivity.
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