Definition
Churn rate is the share of customers (or revenue) you lose in a period. Logo churn counts accounts. Revenue churn counts rupees — and can be offset by expansion. High growth with high churn is a leaky bucket.
In the room
How the word shows up in a real conversation.
You start the month with 200 paying schools and lose 16. Logo churn is 8%. If the remaining schools upgrade, revenue churn can still be lower. Report both.
Formula
Logo churn = customers lost in the period ÷ customers at start
Common mistake
Hiding churn behind new logos. If you add 50 and lose 40, you did not grow a healthy base.
See also
Customer lifetime value (CLV)
Predicted revenue a customer will generate over their entire relationship.
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Net Revenue Retention (NRR)
How revenue from last year’s customers changed after expansion, contraction, and churn.
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Monthly Recurring Revenue (MRR)
Predictable subscription revenue normalised to a month, excluding one-off fees.
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Unit Economics
Financial analysis of the profitability of individual units or transactions.
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