Lifecycle & Retention

Churn

Quick answer

The rate at which customers or subscribers stop being customers.

Definition

Churn measures loss: subscription cancellations, or in commerce, buyers who never repurchase. It is the silent killer of compounding - high churn means every growth rupee refills a leaking bucket instead of raising the level.

Why it matters

We model churn before scaling spend. If retention is broken, acquisition is just expensive churn.

Formula

Customers lost / Customers at start, per period


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