Churn Prevention Playbook Template

For SMB-focused products, 3-5% monthly logo churn is common. For mid-market, 1-2% monthly is the benchmark. For enterprise, anything above 1% monthly signals a problem. Net revenue retention above 110% means your expansion revenue offsets churn, which is the goal for growth-stage companies. Track this metric alongside [gross margin](/glossary/gross-margin) to understand the full financial picture.

Start with 5-8 signals. Fewer than 5 does not give you enough signal to differentiate healthy from at-risk accounts. More than 10 creates noise and makes the model hard to maintain. The most predictive signals are usually login frequency, feature breadth, and support sentiment. Add domain-specific signals (e.g., data freshness for analytics products, message volume for communication tools) based on what your data shows.

As soon as you have 50+ paying customers and can measure churn consistently. Before that, your sample size is too small for health scoring and you should focus on 1:1 customer conversations instead. The infrastructure investment (analytics, CRM integration, CS workflows) takes 4-6 weeks, so start building before churn becomes a crisis.

Both. The product team owns the instrumentation, health scoring model, and in-product interventions (onboarding improvements, feature discovery). The CS team owns the human touchpoints (outreach, QBRs, save offers). A shared dashboard and weekly sync between the two teams ensures alignment. ---