Churn analysis reveals why customers leave and how to prevent it. Key metrics: (1) Gross churn: % of customers lost. (2) Net churn: gross churn minus expansion (can be negative—ideal). (3) Revenue churn vs. logo churn: prioritize revenue impact. Analysis steps: segment churn by cohort, customer size, acquisition channel, and usage patterns. Common findings: 40-60% churn in first 90 days (onboarding issue), high churn in small accounts (ICP problem), low-usage preceding churn (engagement issue). Reduction tactics: improve onboarding, proactive health scoring, save campaigns for at-risk customers, exit interviews, and win-back programs. Target: <5% monthly churn for SMB, <1-2% for enterprise.
Key Churn Analysis Takeaways
- Track gross churn and net revenue churn
- Net negative churn is the goal (expansion > losses)
- Segment by cohort, size, channel, usage
- 40-60% of churn in first 90 days
- Low usage often precedes churn—early warning
- Proactive health scoring identifies at-risk
- Exit interviews reveal root causes
- Win-back programs can recover 10-15%
- SMB target: <5% monthly churn
- Enterprise target: <1-2% monthly churn
Churn Analysis Statistics
<5%
monthly churn target (SMB)
<1-2%
monthly churn target (enterprise)
40-60%
churn in first 90 days
10-15%
win-back recovery rate