churn-prevention
Installation
SKILL.md
Churn Prevention Strategy
Understanding Churn Types
| Churn Type | Definition | Typical Range |
|---|---|---|
| Logo Churn | % of customers who cancel in a period | 3-7% monthly (SMB SaaS), <1% monthly (Enterprise) |
| Revenue Churn (Gross) | % of MRR lost from cancellations + downgrades | 1-4% monthly |
| Revenue Churn (Net) | Gross churn minus expansion revenue | Negative is excellent (net expansion) |
| Voluntary Churn | Customer actively chooses to cancel | 60-80% of total churn |
| Involuntary Churn | Payment failure, expired card | 20-40% of total churn |
Net Revenue Retention (NRR) is the single most important retention metric:
- NRR = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR
- Best-in-class SaaS: 120-140% NRR
- Good: 100-120% NRR
- Concerning: Below 100% NRR (you're shrinking)