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SaaS & Startupadvanced

Revenue Churn

Definition

The percentage of recurring revenue you lose in a period from cancellations and downgrades, measured in money rather than number of customers.

Why it matters

Revenue churn matters more than customer churn when your biggest accounts pay the most; losing one large customer can hurt more than losing several small ones.

Example

You start the month with £10,000 in monthly recurring revenue and lose £500 to cancellations, so your monthly revenue churn is 5%.

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