SaaS metrics
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 prioritize 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.
[Phano] €85,000 ARR, critical · Health 34/100 ●
June 1, 2026
→ Escalate to the sponsor
- • Silent for 28 days on email
- • Renewal in 22 days, quote not opened
- • No meeting scheduled in 6 weeks
+ custom fields: phano_phase, phano_confidence, phano_health_score…
History on this account
[Phano] €85,000 ARR, high · Health 47/100 ●
May 25 · → Schedule a sponsor touchpoint
[Phano] €85,000 ARR, medium · Health 58/100 ●
May 18 · → Monitor decision-maker engagement
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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 prioritize by exposed value.
How do you calculate the churn rate?
Customers lost over the period divided by customers at the start, times 100. In revenue terms: MRR lost divided by starting MRR. Always compare like-for-like cohorts.
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