Definition
Revenue churn is the percentage of recurring revenue lost during a period, measured as gross or net.
Why it matters
Revenue churn measures the financial impact of churn, which can differ greatly from logo churn.
Pricing implications
If revenue churn rises after a price change, you may be losing high-value customers or seeing downgrades. Use this to adjust pricing or add retention-focused guardrails.
Measurement tips
Track revenue churn by cohort and plan to identify sensitive segments.
Checklist
- Choose gross or net revenue churn and define it clearly.
- Use a consistent time window (monthly or quarterly).
- Separate churn from downgrades and contractions.
- Compare revenue churn before and after pricing changes.
- Align with MRR reporting definitions.
- Track revenue churn by segment and plan.
- Avoid mixing one-time fees into churn metrics.
- Use revenue churn as a primary retention KPI.