Customer Churn

Customer Churn measures the percentage of customers lost from an existing customer base during a period. Also called logo churn, it is calculated by dividing the number of customers lost during the period by the number of customers at the beginning of the period.

Unlike revenue churn metrics, each customer carries equal weight regardless of account size. Customer Churn therefore measures customer retention without regard to how much revenue each customer contributes.

Lower Customer Churn generally indicates stronger retention. Rising churn means a greater share of the existing customer base must be replaced simply to maintain the same customer count.

Customer Churn should be evaluated alongside Gross Revenue Churn and Net Revenue Churn. Losing several small customers can produce meaningful Customer Churn with limited revenue impact, while losing a single large customer can have the opposite effect.

MetricFrame calculates Customer Churn from customer-level revenue data by dividing customers lost during each period by the beginning customer count.