Churn rate: is it the right measurement?
In short
Two companies report 5% monthly churn. One compounds forever, one bleeds to zero. The difference is the shape of the curve, and you can only see it in cohorts. I built a free retention curve simulator so you can plug in your own data and see which stage your churn is at.
Key points
- The same churn rate can describe very different businesses.
- Cohort curves show whether retention stabilises.
