Why you should care about user churn
Understanding and optimizing this metric to be as low as possible is extremely advantageous to your business.
"Not tracking user churn is like trying to eat a bowl of cheerios with a pitchfork; you won't retain much "
Why understanding your user churn is so important?
User churn's importance exists on the following levels:
Product should constantly be optimizing to reduce user churn rate:
The product team should focus on reducing user churn every month, quarter, and year. Churn is a direct reflection of the value of the product and features. When the product is great and aligned with a value metric the rate of cancellations should get to $0 monthly. A great way to keep churn in check is with a subscription reporting platform for product teams.
User churn directly affects your financial metrics (MRR/LTV/CAC):
If users are disappearing, then so is revenue. This is a critical metric for your finance team to pay attention to to ensure that recurring revenue, lifetime value, and acquisition costs are all where they should be in accordance to your company goals.