Churn, specifically in B2B SaaS, is the rate at which customers cancel or discontinue their use of a software service. Churn is an important metric to measure because it is more cost-effective to retain current customers than acquire new ones.
Reducing churn and increasing retention is often an important goal for SaaS organizations, as they increase the customer lifetime revenue and overall company revenue.
Example: By pursuing high-quality leads from partners, Shari was able to build trust, increase customer satisfaction and reduce churn at her organization.
A conversion rate is the average number of conversions per ad interaction as a percentage. Remember that a conversion is a desired goal of an ad, often a website visit or sale. Conversion rate can be found by dividing the number of conversions by the total number of ad visitors and multiplying by 100 to get a percentage.
While desirable conversion rates vary greatly by industry and business model (the average conversion rate in Google Ads is 4.40% on the search network), a high conversion rate can be indicative of a successful ad campaign.
Example: Mikaela was calculating the conversion rate of her ad campaign. There were 1100 conversions out of 35,600 total ad interactions, yielding a conversion rate of 3.09%.