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Glossary · Churn

Churn

Churn is the rate at which customers stop using or paying for a product over a given period, the inverse of retention.

High churn forces a business to replace lost customers just to stay flat, raising the effective cost of growth and depressing lifetime value.

For subscription AI products, churn is a primary driver of lifetime value and a key signal of whether the product delivers durable value.

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Related terms
Net Revenue Retention (NRR)
Net revenue retention (NRR) is the percentage of recurring revenue retained from existing customers over a period, inclu…
Lifetime Value (LTV)
Lifetime value (LTV) is the total net profit a business expects to earn from a customer over the entire span of the rela…
Customer Acquisition Cost (CAC)
Customer acquisition cost (CAC) is the average total sales and marketing spend required to win one new customer.…
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