Glossary
Churn
The share of customers, or of revenue, that leaves in a period.
Customer churn counts departures. Revenue churn weights them by what they were paying, which is the more useful number when a few accounts are much larger than the rest.
Churn is the quiet killer of an otherwise good growth story. A company adding ten percent of new customers a month while losing eight percent is nearly standing still, and the growth chart alone will not show it.
Related terms
- MRR (monthly recurring revenue) — The predictable revenue that arrives every month without a new sale.
- Retention — How many customers are still there after a given time.
- LTV (lifetime value) — The total gross profit one customer produces before they leave.
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