The concept of “churn” comes from English and refers to the proportion of customers or subscribers lost over time, also known as churn rate. In other words, churn represents the rate at which a subscription-based business sees its subscribers leave due to subscription expiration or cancellation, resulting in decreased revenue. Measuring churn rate is crucial for subscription-based businesses, as it is a key indicator of their long-term viability.

It’s important to distinguish between two types of churn: customer churn, which assesses a subscriber’s loyalty over the entire subscription period, and revenue churn, which quantifies the percentage of revenue lost by the business.