Any software vendor’s loss or reduction in the number of customers, accounts, contracts, or bookings over time directly translates into customer churn. As one of the most widely-tracked (and discussed) subscription company metrics, customer churn probably has a more profound impact on recurring revenue than, say, overhead costs or ad spending.
Since customer churn reflects how fast subscription users are leaving your business, it helps in understanding the viability of your business, as a high churn rate tends to hinder your growth potential.
Source - https://www.work365apps.com/a-software-vendors-guide-to-customer-churn/
