Churn is the rate at which customers opt out of their recurring revenue subscriptions. SaaS companies use this metric to gauge the rate of cancellations during a period or over a period.
Churn is used:a. To understand Customer Lifecycle Valuations.b. To gauge overall revenue performance and bookings, and estimate cash flows.c. SaaS churn numbers are also focused on by analysts and investors. SaaS businesses may use a variety of churn metrics while highlighting the true performance of the business to stakeholders.