The Ultimate (SaaS) Churn Rate Cheat Sheet

By Nick Franklin,February 24, 2015

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)

churn-cheat-sheet

Download The Ultimate (SaaS) Churn Rate Cheat Sheet [PDF]

Want a professionally printed copy – for FREE?

If you would like a professionally printed version of this Cheat Sheet just signup for a trial of ChartMogul and fill in your address under Settings > Address. Then shoot an email to [email protected] (subject line “PRINTED CHEAT SHEETS“) and we’ll mail you some to the address stored in your account – completely free.

References used in creating this cheat sheet:

  • Nick Franklin

    If there’s anything important you think we’ve missed please share, ‘whyleym’ on HN pointed out we’d failed to mention churn from declined transactions, which is sort of similar to passive churn – https://news.ycombinator.com/item?id=9099794

    • That guy

      There’s a typo, first page, right column “MMR”

      • Nick Franklin

        Many thanks, fixed now http://snip.ly/XXPk …luckily we hadn’t ordered the printed copies yet :)

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