The Ultimate (SaaS) Churn Rate Cheat Sheet

Churn rate is one of those subject areas that seems to be endless. There are many, many great articles out there on how to model or reduce churn or (as our investor Christoph Janz wrote over this past weekend) why most SaaS startups should aim for negative churn.
In this cheat sheet we’re focussing on some of the ways we’ve been thinking lately about churn at ChartMogul.
Particularly around how to better classify churn, e.g.
- Pro-active churn (e.g. cancellations)
- Passive churn (e.g. user doesn’t update an expired card)
- “Happy” churn (the user finished using your product for the purpose they intended)
- Churn that isn’t really churn (e.g. a cancellation and refund within a money-back-guarantee period)
And also best practices for when to recognise churn, e.g.
- At the time of cancellation
- At the end of the current (paid-up) billing period
Presenting: The Ultimate (SaaS) Churn Rate Cheat Sheet – (PDF link below)

Download The Ultimate (SaaS) Churn Rate Cheat Sheet [PDF]
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References used in creating this cheat sheet:
Lincoln Murphy – SaaS Churn Rate: What’s Acceptable?
Jason M. Lemkin – What is a reasonable churn rate for a subscription business?
Tomasz Tunguz – Why Negative Churn Is Such A Powerful Growth Mechanism
Alex Turnbull (GrooveHQ) – Results Of The 2013 SaaS Small Business Conversion Survey!
Will Kurt (KissMetrics) – Why Modeling Churn is Difficult
Steven H. Noble (Shopify) – Defining Churn Rate
Devin Brady (Recurly) – A Better Way to Calculate Your Churn Rate
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Nick Franklin
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That guy
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Nick Franklin
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