Churn

The share of customers, or of recurring revenue, that a company loses over a period. Low churn means customers stay; high churn means the company has to win new customers just to stand still.

Simple example

A company starts the year with 100 customers, and 8 of them cancel. Its customer churn for the year is 8%.

8 of 100 customers cancelledCustomer churn = 8 รท 100 = 8%
Made-up numbers, for illustration only.