Churn Rate

Churn rate measures how fast you're losing customers or revenue. It's the metric that determines whether growth compounds or stalls — a company growing 30% annually with 20% churn is barely moving forward.

Types of Churn

• Logo churn (customer churn): Percentage of customer accounts lost. A small customer and an enterprise customer count equally.
• Revenue churn (gross): Percentage of recurring revenue lost to cancellations and downgrades. Weights by dollar value.
• Net revenue churn: Revenue lost minus expansion revenue from remaining customers. Can be negative (net expansion) — the holy grail.

Benchmarks

• Enterprise SaaS: 5-7% annual logo churn is strong
• Mid-market SaaS: 10-15% annual is typical
• SMB SaaS: 3-5% monthly isn't unusual (high velocity, low switching cost)

RevOps tracks churn by segment, cohort, and reason code. The analysis often reveals that "churn" isn't one problem — it's five different problems in five different segments requiring five different interventions. See all 25 RevOps KPIs and Net Revenue Retention.