Churn Rate

Churn rate can mean the share of customers who cancel (logo churn) or the share of revenue lost to cancellations and downgrades (revenue churn), and the two tell different stories from the same customer base. A business can lose a lot of small accounts and barely move revenue churn, or lose almost no accounts and still see revenue churn climb if a few large customers downgrade.

Reporting “churn” without saying which one is a common, quiet source of board confusion. See net revenue retention for the metric that folds churn and expansion into one number.