Customer Churn: The Questions To Ask

When startups talk about percentage churn(say 5 percent) they ignore too many variables:

Does this include users who signed up during this month, or only lost customers from the previous month?

What is the revenue churn vs user churn? 5% is okay if it’s all free users you’re losing, but what if that 5% happened to be all your premium customers or 50% of your revenue?

What is your activity churn? How many users became inactive this month? This is your leading indicator of future churn, and usually the most actionable insight.