Measuring revenue churn is critical for subscription-based businesses, as it helps you understand how many customers are leaving your service.

Churn rate is crucial to track; understanding why customers leave can help improve retention and inform future pricing strategies.

Growth is determined by the balance between conversion rates and churn, and working on reducing churn is generally easier than improving conversion rates.

Growth is usually simple; it's the interaction between conversion rate and churn, and the gap between these two indicates how fast you're going to grow.

If customers churn out quickly, it creates a leaky bucket scenario where you're constantly scrambling to replace lost customers instead of building a stable revenue base.

Pay attention to customer renewal rates rather than just churn rates, as they provide a clearer picture of customer retention.

Once you have an initial go-to-market strategy, the real challenge is retaining customers, as many companies experience high churn despite early traction.

The 'shark fin effect' describes how companies can experience rapid growth followed by a sharp decline in user retention if they don't focus on keeping users engaged. Suhail Doshi also mentions that he's keeping 93 percent of these dollars, but there's a seven percent monthly churn, which means if you extrapolate that over 12 months, you're actually losing fifty-eight percent of your revenue in a year.

Aim for monthly or annual recurring revenue to protect your revenue during downturns, as it provides stability until contract renewal discussions.