# Churn **Churn** is the rate at which customers stop subscribing, paying, or using your product over a given period. Two common types: - **Customer churn** — % of customers lost (count-based) - **Revenue churn** — % of MRR lost (dollar-based) ## Formula ``` Customer churn = Customers lost ÷ Customers at start × 100 Revenue churn = MRR lost ÷ MRR at start × 100 ``` Healthy SaaS churn varies by segment: SMB churn of 5%/month is normal; mid-market is 1–2%; enterprise is under 1%. ## Voluntary vs involuntary churn - **Voluntary** — customer chose to leave (unhappiness, budget, found a better tool) - **Involuntary** — payment failures, expired cards, billing system issues Involuntary churn is often 20–30% of total churn and is usually recoverable with dunning and card-update workflows. ## Why churn matters In a SaaS model, every churned customer means you have to acquire a replacement just to stand still. At 5% monthly churn you replace your entire book every 20 months. Churn compounds — a 1% improvement in churn often unlocks 10% in long-term revenue. ## How customer operations affects churn Operational excellence reduces churn through: - Faster onboarding (early churn is largest) - Proactive health monitoring (catch at-risk accounts) - Consistent QBRs (re-anchor value) - Lower friction support (frustration drives churn) ## How BlueHill helps reduce churn BlueHill's customer health view, interaction timeline, and status reports make at-risk accounts visible weekly rather than at renewal. Onboarding templates reduce time-to-value (the biggest predictor of first-year churn). Related: [NRR](/glossary/nrr) · [GRR](/glossary/grr) · [Customer health score](/glossary/customer-health-score) · [Renewal](/glossary/renewal)