# Churn Rate

> Churn rate is the percentage of customers or subscribers who stop using a service during a given time period, typically measured monthly or annually.

- **URL**: https://dodopayments.com/glossary/churn-rate

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## What is a Churn Rate?

The churn rate is the percentage of customers who stop using a product or service over a specific period. It's a key metric for businesses, especially in subscription-based models like SaaS, to measure how well they retain customers.

A high churn rate indicates that many customers are leaving, which can hurt long-term growth. Conversely, a low churn rate suggests strong customer retention and satisfaction.

### Why It Matters:

Understanding churn rate helps businesses:

1. Identify retention issues.

2. Improve customer satisfaction.

3. Optimize growth strategies.

Reducing churn is important for boosting recurring revenue and sustaining long-term business success.

## Learn More

- [Metrics to reduce SaaS churn](https://dodopayments.com/blogs/reduce-churn-metrics-saas)
- [Reducing involuntary churn from failed payments](https://dodopayments.com/blogs/involuntary-churn-failed-payments)
- [How subscription fatigue impacts retention](https://dodopayments.com/blogs/subscription-fatigue)