“What's your churn, and why do customers leave?”

What they're really asking

Is the product sticky? Investors rarely care about the question on its own. They're testing whether you know your numbers cold, whether your assumptions are honest, and whether you can explain them simply.

How to answer, step by step

1. Give monthly logo churn and revenue churn.
2. Name the top two reasons customers leave.
3. Explain what you're doing about it, with a target.

An example answer

Monthly churn is about 2.7%. Most churn happens in the first three months from weak onboarding, so part of the round funds an onboarding programme with a target below 2.5%.

Figures are from Loopdesk, the fictional SaaS company in our sample files. Swap in your own numbers and keep the structure.

The answer that loses trust

Where the proof lives

Before the meeting, find the number behind your answer. In our workbooks it lives in: Unit Economics - Inputs, Cohort Retention. If you can open that tab and point to it, the follow-up question is easy.