Unit economics & SaaS

Churn and retention

Churn is the share of customers (or revenue) lost in a period; retention is what is kept. Logo churn counts customers; revenue churn counts dollars.

Owned by: AnalystTest band: Analyst

The formula

Monthly churn % = Customers lost in month ÷ Customers at start of month

Revenue churn matters more than logo churn: losing ten small customers is not the same as losing one large one. Track both.

Start of month: 400 customers. Lost during the month: 12. Added: 30. Monthly logo churn is…