Churn (attrition rate)
Share of customers or revenue lost over a given period.
Definition
Churn measures the loss of customers (logo churn) or recurring revenue (revenue churn) over a period. It is expressed as a percentage: the number of accounts lost relative to the starting base, or the MRR lost relative to the starting MRR. It is the central indicator of the health of subscription revenue.
Why it matters
For a Customer Success Manager, churn is the outcome to avoid: every point lost erases months of acquisition. For an Account Manager, the churn of one large account weighs more than a dozen small ones, which makes it essential to prioritise by exposed value.
How Phano helps you
Phano cross-references your signals per account to surface churn risk before renewal, with its likely cause and the action to take.
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Frequently asked questions
What is Churn (attrition rate)?
Churn measures the loss of customers (logo churn) or recurring revenue (revenue churn) over a period. It is expressed as a percentage: the number of accounts lost relative to the starting base, or the MRR lost relative to the starting MRR. It is the central indicator of the health of subscription revenue.
Why does Churn (attrition rate) matter?
For a Customer Success Manager, churn is the outcome to avoid: every point lost erases months of acquisition. For an Account Manager, the churn of one large account weighs more than a dozen small ones, which makes it essential to prioritise by exposed value.
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