Churn breaks your flywheel.

The difficulty of regaining a loss is often underestimated
To recover from a 20% loss, you need to make a 25% gain

“...The first rule of investment is don’t lose money. And the second rule of investment is don’t forget the first rule. And that’s all the rules there are...”
Warren Buffet

We can apply this principle to other contexts where there is a growth rate, such as revenue growth.

On the numbers, churn reduces the revenue base on which your growth rate is applied.

Qualitatively, churn reduces the volume of acquisition-accelerating actions across your user base. Acquisition-accelerating actions include behaviours by your customers that fuel further acquisition, such as sharing, inviting, word-of-mouth, or creating content.

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