Churn Rate is The percentage of customers or revenue lost over a given period. Logo churn measures lost accounts; revenue churn measures lost dollars, which can differ significantly due to account size variation.
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.
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.
Frequently Asked Questions
Should you measure monthly or annual churn?
Both. Monthly churn shows trends faster. Annual churn is easier to benchmark and communicate. Don't just multiply monthly by 12, use the compound formula: Annual = 1 - (1 - Monthly)^12.
