Churn

The rate at which customers leave. A 28% annual churn implies an average customer life of about 3.6 years.

Two versions are quoted and they differ. Logo churn counts customers. Revenue churn weights them by what they paid. When a company loses many small customers and no large ones, it has high logo churn and low revenue churn, and only the second affects the financial statements.

Churn is also usually front-loaded, with the first year far worse than later ones, so a single blended figure misdescribes both ends.

Trust cohort curves over averages.