Back to Glossary
Sales 1 min read
Last updated: May 2026

What is Churn?

The loss of customers or revenue over a given period, typically expressed as a percentage of total customers or MRR.

What is Churn?

Churn is the rate at which customers stop doing business with you over a given period. There are two types:

  • Customer churn (logo churn): Percentage of customers who cancel
  • Revenue churn: Percentage of MRR/ARR lost from cancellations and downgrades

Churn Benchmarks

  • Best-in-class B2B SaaS: 3-5% annual logo churn
  • Average B2B SaaS: 5-7% annual
  • SMB-focused: 10-15% annual
  • Enterprise-focused: 2-5% annual

Why Churn Matters

A 5% reduction in churn can increase profitability by 25-125% (Bain & Company). Churn is the "leak in the bucket", no amount of new customer acquisition matters if you're losing existing customers at the same rate.

Common Causes of Churn

  • Poor onboarding experience
  • Failure to demonstrate value early
  • Lack of ongoing engagement
  • Champion leaving the company
  • Better competitor offering

How FlowStrata Reduces Churn Risk

By continuously filling clients' pipelines with qualified meetings, FlowStrata ensures our clients always have active deals in progress, making the ROI of our service self-evident and reducing churn risk for their own businesses.

Related Terms

Churn Rate

The percentage of customers or revenue lost during a specific period, a key indi...

LTV (Lifetime Value)

The total revenue a business expects to generate from a single customer over the...

NRR (Net Revenue Retention)

The percentage of recurring revenue retained from existing customers including e...

Retention

The ability of a company to keep its existing customers over time, measured as a...

Want Us to Handle This For You?

Now you know what Churn means. Let FlowStrata implement it as part of a fully managed outbound engine that books qualified meetings on your calendar.

Browse More Terms