What Is a Good Churn Rate for SaaS? Benchmarks and Reduction Strategies

A good monthly churn rate for SaaS companies is between 3-5% for SMB-focused products and under 1% for enterprise. Churn rate measures the percentage of customers or revenue lost over a period. Reducing churn by just 1% can increase company valuation by 12%. This guide covers logo churn vs revenue churn, how to calculate both, and proven tactics to reduce churn at every stage.

Topics covered

• SaaS churn rate
• churn benchmarks
• reduce churn
• customer retention