2026 data · Sample size: 196 · Source: Tomasz Tunguz Venture Data 2026
25th %ile
6.6%
Median
5.5%
75th %ile
4.6%
90th %ile
4.1%
▼Trending down year-over-year
About This Metric
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
SaaS companies at Series C stage are sitting on a goldmine of unrealized improvement in this metric. The gap between median and top-quartile represents millions in enterprise value. I have seen 15 companies close this gap in under 6 months by treating it as their primary OKR. The ones who fail treat it as a dashboard metric. The ones who win treat it as an operating principle.
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 SaaS at Series C?
Median is 5.5%. Top-quartile achieves 4.6%. 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 Series C, the biggest lever is usually operational efficiency and product-market fit refinement.