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That awkward moment when customers cancel (and when to actually call it churn)

Original: When should you recognize churn?

Marvin Sebastian
May 29, 2025
4 min read
Guide
Intermediate
When should you recognize churn?

Summary

Determining when to classify a customer as 'churned' is a critical yet tricky aspect of SaaS analytics. This article explores different approaches for identifying churn signals, diagnosing the drivers of customer contraction, and using churn analytics to inform retention and expansion strategies.

Who This Is For

Product Managers
Revenue Ops
Founders

Key Takeaways

  • Learn three different approaches to recognize churn: immediate cancellation, end of paid period, or billing system expiration
  • Understand how each churn recognition method impacts your MRR reporting and financial planning
  • Discover which churn recognition approach works best based on your business model, customer behavior, and team needs
  • See how churn timing affects metrics like LTV and CMRR for more accurate SaaS analytics

Tools & Technologies

ChartMogul Stripe SaaS billing systems CMRR (Committed Monthly Recurring Revenue) tracking

Topics Covered

churn-analysis customer-retention revenue-metrics