What is Churn Rate?
The percentage of customers (or revenue) that stop doing business with you in a given period.
Also known as: customer churn, logo churn, revenue churn
Churn rate measures the rate at which customers leave. Two common variants:
**Logo churn (or customer churn)** is the percentage of customers who left in the period. If you had 100 customers and 5 left, your monthly churn is 5%.
**Revenue churn** weights by spend — losing one customer who paid $10K/month hurts more than losing one who paid $200/month. For B2B or any business with variable customer size, revenue churn is the more meaningful metric.
For one-time-purchase businesses (like Nexora's web design packages), churn isn't directly applicable — but the parallel is repeat-purchase rate or referral rate. A customer who refers two friends is the inverse of churn.
Churn is the leak in the bucket. You can grow acquisition forever and never make progress if churn is high enough. Reducing churn 1% is usually worth more than growing acquisition 5%.