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. A company losing many small customers and no large ones 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.

Cohort curves, not averages.