Churn rate

If you start the month with 50 customers and 2 cancel, your monthly churn rate is 4%. Some teams also measure lost MRR or ARR instead of lost customers. High churn means you must keep adding customers just to stay the same size. Low churn is one sign of product-market fit.

With 2 or 3 customers, one cancel looks like a huge rate, so talk to people instead of reading percentages. Call every customer who cancels and ask why. Often the cause is weak onboarding or a low activation rate. Then reduce churnsoon by fixing the most common reason first.