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           SaaS companies obsess about customer churn for a reason. It measures precious customers lost within a given period of time.
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           In other words, it seems like the antithesis of growth and is totally discouraging to see.
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           But actually, the traditional churn metric where
           <em>
            churn = customers lost / customers had
           </em>
           is very susceptible to misinterpretation.
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           Let me illustrate for you quickly.
          </p>
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           Let’s say at the beginning of January you had 100 customers. Then, you really messed up your product, and 99 customers left.
          </p>
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           One customer was barely using your product, so they haven’t noticed yet that the product is broken. At the beginning of April, you still have that one customer.
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           Your Active Subscriptions graph might look like this:
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                ​
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           ​
           <br/>
           In our story, at the beginning of April churn would be 0%. One customer at the beginning of the month, and one customer at the end.
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           Does this illustrate anything useful for our business? No.
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           Zooming out to less simple situations, we often see churn misrepresent what’s actually going on in a business.
          </p>
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           For example, if you have a massive influx in short-term users, and a minor influx in loyal customers, your churn will look terrible and hide the success of your increase in loyal customers.
          </p>
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           Here at Baremetrics, our resident data scientist dove into the value of the churn metric, as well as other significant questions related to price optimization.
          </p>
          <p style="margin:1em 0;font-size:18px;line-height:1.5em;font-family:Arial,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Oxygen-Sans,Ubuntu,Cantarell,'Helvetica Neue',sans-serif;color:#000000;font-size:16px;line-height:1.4">
           Read more about what the
           <a rel="noopener noreferrer" style="color:#6078ff" target="_blank" url-id="1392538913">
            churn metric really tells us
           </a>
           , and don't forget to check out the whole series here ⬇️
          </p>
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           1.
           <a rel="noopener noreferrer" style="color:#6078ff" target="_blank" url-id="1392538918">
            Price Optimization: An Introduction
           </a>
          </p>
          <p style="margin:1em 0;font-size:18px;line-height:1.5em;font-family:Arial,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Oxygen-Sans,Ubuntu,Cantarell,'Helvetica Neue',sans-serif;color:#000000;font-size:16px;line-height:1.4">
           2.
           <a rel="noopener noreferrer" style="color:#6078ff" target="_blank" url-id="1392538919">
            Customer Retention
           </a>
           ​
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           3.
           <a rel="noopener noreferrer" style="color:#6078ff" target="_blank" url-id="1392538922">
            Why You Should Experiment &amp; What Data to Use
           </a>
          </p>
          <p style="margin:1em 0;font-size:18px;line-height:1.5em;font-family:Arial,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Oxygen-Sans,Ubuntu,Cantarell,'Helvetica Neue',sans-serif;color:#000000;font-size:16px;line-height:1.4">
           ​
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               READ: What does churn really tell us?
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          <!--[if mso]><table class="button-table" width="100%" border="0" cellSpacing="0" cellPadding="0" style="margin:8px 0"><tr><td align="center"><table border="0" cellSpacing="0" cellPadding="0" width="auto"><tr><td align="center" bgcolor="#5484fc" style="background-color:#5484fc;border-radius:4px;overflow:hidden"><a class="email-button" href="https://baremetrics.com/blog/price-optimization-in-saas-what-does-churn-tell-us" target="_blank" rel="noopener noreferrer" style="background-color:inherit;display:inline-block;text-decoration:none;border-width:1px;border-style:solid;margin:0;color:#ffffff;border-color:#5484fc;padding:12px 20px;font-size:16px">READ: What does churn really tell us?</a></td></tr></table></td></tr></table><![endif]-->
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           ​
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           Cheers,
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           Lea
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