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The Internet Compass

Metrics

Churn Rate

Churn rate is the percentage of customers (logo churn) or revenue (revenue churn) lost during a period, divided by the total at the start of that period.

Logo churn and revenue churn diverge when losses concentrate in small or large accounts. Losing many small customers looks alarming by logo and negligible by revenue.

Voluntary churn reflects product or value problems; involuntary churn from failed payments is a solvable operational issue that often accounts for a surprising share of the total.

Example

Losing 12 of 400 customers in a quarter is 3% quarterly logo churn.