Percentage of customers or revenue lost during a given period. The inverse of retention.
Customers Lost / Starting Customers × 100
Lower is better · Unit: percentage
How to Improve
Build a churn prediction model using product usage data and trigger intervention at risk score thresholds. Implement a structured offboarding survey that captures the real reason for leaving. Create a win-back playbook for the first 90 days after churn.
Ehsan's Analysis
At Growth stage, Cybersecurity companies should benchmark against their own trailing 90-day performance, not industry medians. The absolute number matters less than the trajectory. I have funded companies with below-median metrics that showed consistent 8% monthly improvement over companies with better absolute numbers but flat trajectories. Velocity of improvement is the signal.
EJ
Ehsan Jahandarpour
AI Growth Strategist & Fractional CMO
Forbes Top 20 Growth Hacker · TEDx Speaker · 716 Academic Citations · Ex-Microsoft · CMO at FirstWave (ASX:FCT) · Forbes Communications Council
Frequently Asked Questions
What is a good Churn Rate for Cybersecurity at Growth?
Median is 5.9%. Top-quartile achieves 5%. Aim for top-quartile to attract investors.
How does Hybrid model affect Churn Rate?
The Hybrid business model impacts this metric through pricing mechanics and customer behavior patterns. Benchmark against companies with the same model for accurate comparison.
How to improve Churn Rate?
Focus on the primary driver for your stage. At Growth, the biggest lever is usually operational efficiency and product-market fit refinement.