Churn Rate
The percentage of customers who cancel or downgrade their subscriptions within a specific time period.
Churn Rate
Churn rate is a critical SaaS metric that measures the percentage of customers who stop using your service during a given time period. Understanding and minimizing churn is essential for sustainable business growth and maximizing the value of your affiliate marketing efforts.
Types of Churn
Customer Churn
The percentage of customers who cancel their subscriptions
Customer Churn Rate = (Customers Lost / Total Customers at Start) × 100
Revenue Churn
The percentage of revenue lost from downgrades and cancellations
Revenue Churn Rate = (MRR Lost / Total MRR at Start) × 100
Calculating Churn Rate
Monthly Customer Churn
Monthly Churn = (Customers who churned in month / Customers at beginning of month) × 100
Example Calculation
- Start of month: 1,000 customers
- Customers lost: 50
- Monthly churn rate: 5%
Churn and Affiliate Marketing
How Affiliates Impact Churn
Positive Impact
- Quality matching: Affiliates find right-fit customers
- Education: Affiliates pre-educate prospects
- Expectations: Proper positioning reduces surprise churn
- Ongoing support: Affiliates provide continued guidance
Use our SaaS Churn Calculator to understand how affiliate marketing can offset your churn rate.
Real-World Examples
A company losing 50 out of 1,000 customers monthly has a 5% churn rate
Reducing churn from 10% to 5% doubles customer lifetime value
Pro tip: Press J for next term, K for previous
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