Churn
The rate at which paying customers stop being customers — cancellation, expiration, leave.
What it is
Churn = % of paying customers who stop paying in a period. Monthly churn × 12 ≈ annual churn (but not quite — compounding).
Why it kills businesses
Churn higher than growth = you're shrinking. Doesn't matter how much you spend on acquisition. Bucket has a hole.
Where it hides
Most teams measure account churn (someone cancels). Often more accurate: revenue churn (lost dollars). A small customer churning hurts less than a big one downgrading.
How to diagnose
Cluster cancellation reasons. Most patterns are visible. Onboarding stall = day-14 drop-off. Pricing wrong = "too expensive" exits. Product missing job = "doesn't do what I need" exits. Each fix is different.
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