Growth reports can look healthy while the customer base is leaking underneath. If new customers arrive faster than old customers leave, total users or revenue may rise even though retention is getting worse.
Use the Growth Rate Calculator beside the Churn Rate Calculator. Growth shows net movement. Churn shows what the business has to replace before it really grows.
Net growth can hide replacement work
A company that adds 120 customers and loses 80 has grown by 40, but it had to replace a large part of the base first. That replacement work can increase acquisition cost and support load.
Revenue growth can hide weak retention
If prices rise or large new accounts arrive, revenue may grow while customer retention falls. This is why customer count, revenue per visitor and cohort retention should be read together.
Churn affects break-even
When churn rises, the business may need more new customers just to stay flat. That can move the break-even point even if top-line growth still looks positive.
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