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Churn Rate
Definition
The percentage of customers or revenue lost over a given period. Customer churn measures the proportion of subscribers who cancel, while revenue churn accounts for the monetary impact of downgrades and cancellations. Reducing churn is often more valuable than acquiring new customers.
Related Terms
Cap Table (Capitalisation Table)
Capital Deepening
Capital Expenditure (CapEx)
Capital Intensity Ratio
Capitalisation of Intangibles
Related FAQ
What is logo churn versus revenue churn?
Logo churn measures the percentage of customers lost (account closure rate), while revenue churn measures the percentage of recurring revenue lost (accounting for expansion/downgrades).
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