Churn
When customers discontinue use of your product over a given period. Churn rate measures the percentage of customers or revenue lost in a specific time frame (measured monthly or annually).
The formula is:
Logo churn: This is the count of accounts or companies (customers) lost over a given period.
Revenue churn: This counts the value or amount of recurring revenue lost over a given period.
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THE TRUTH: The decision to leave is made several months before the renewal conversation. The cancellation email is only the formal announcement. Customer churn calculates customers lost over a period. Revenue churn calculates revenue lost (due to downgrades or contractions). Both tell different stories on an account.