Churn

Customer churn and revenue churn measure losses over a stated period using different bases. Specify the population, denominator and treatment of retained-customer expansion or contraction.

Churn in round numbers

Hypothetical: an opening cohort of 100 customers loses 15 during one year, giving 15% annual customer churn. That does not establish a 15% revenue loss. Revenue growth also depends on which customers leave, new customers, pricing and expansion or contraction among retained customers.

Recurring revenue · Customer concentration · Unit economics · Voice of customer · Generative AI · All of the glossary