GTM Glossary · Metrics
Churn Rate
The share of customers or revenue lost in a period.
[01]What It Means
Logo churn counts customers; revenue churn counts euros, and the two often disagree. Involuntary churn from failed payments is a different problem from voluntary churn, and mixing them hides which team owns the fix.
[02]Why It Matters
Churn compounds against every acquisition euro. In an expansion market, early churn usually points at a mis-set ICP or an over-promised sale rather than at the product.
[03]Where It Goes Wrong
Reporting monthly churn on annual contracts, which understates the real figure.Ignoring the first-renewal cliff typical of new markets.Treating churn as a customer-success problem when it was created during qualification.
[04]Related Terms