Gross Revenue Churn
Formula
(Contraction + Churned Revenue) ÷ Beginning Revenue
Definition
Gross Revenue Churn measures the percentage of revenue lost from an existing customer base during a period through customer churn and contraction.
It excludes expansion and revenue from new customers, providing a direct measure of revenue lost from the existing customer base.
Interpretation
Lower Gross Revenue Churn generally indicates stronger revenue retention. Rising Gross Revenue Churn means that a greater share of the existing revenue base is being lost through customer churn or contraction.
Because Gross Revenue Churn excludes expansion, it provides a useful view of underlying revenue loss even when upsells elsewhere in the customer base are offsetting that loss.
In MetricFrame
MetricFrame calculates Gross Revenue Churn from customer-level revenue movements by dividing revenue lost through contraction and churn by beginning revenue.