Logo Revenue Churn
Compare customer-logo churn with revenue churn from the same starting cohort.
Description
Logo churn counts lost customers, while revenue churn weights losses by their revenue.
Logo churn counts lost customers, while revenue churn weights losses by their revenue. Their difference can reveal whether losses were concentrated among larger customers.1
Compare customer-logo churn with revenue churn from the same starting cohort.
When to use Logo Revenue Churn
Use this for the following task: Compare customer-logo churn with revenue churn from the same starting cohort.
Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.
How to use Logo Revenue Churn and understand its results
- Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.
- Enter startingCustomers, lostCustomers, startingRevenue, lostRevenue using the field table, then run the tool.
- Read logoChurnPercent, revenueChurnPercent, churnGapPoints. Interpret flags, units, ordering and placeholder values using the rules below.
- Review any reported issue or failed check, correct the supplied values when appropriate, and verify the result in its intended context.
| Input field | Meaning | Value type and bounds | Requirement |
|---|---|---|---|
| startingCustomers | Starting customers | number | Required |
| lostCustomers | Lost customers | number | Required |
| startingRevenue | Starting revenue | number | Required |
| lostRevenue | Lost revenue | number | Required |
Require positive starting totals and nonnegative losses bounded by each. Return both rates and revenue percent minus logo percent as percentage points.2
logo%=100 lostCustomers/startingCustomers; revenue%=100 lostRevenue/startingRevenue This summarizes the declared operation. Units, indexing, inclusivity and exceptional cases are explained in the surrounding text.
| Output field | Meaning | Value type |
|---|---|---|
| logoChurnPercent | Logo churn percent | number |
| revenueChurnPercent | Revenue churn percent | number |
| churnGapPoints | Churn gap points | number |
{
"input": {
"startingCustomers": 100,
"lostCustomers": 5,
"startingRevenue": 1000,
"lostRevenue": 100
},
"output": {
"logoChurnPercent": 5,
"revenueChurnPercent": 10,
"churnGapPoints": 5
}
}Limitations and assumptions
Both rates must use the same starting cohort and period. This does not include contraction or expansion unless supplied as losses under a deliberate definition.
These outputs describe the supplied scenario; accounting definitions, capitalization terms and time periods must match the intended use. Malformed requests produce input errors. A successfully evaluated request can still contain false flags, empty result lists or a result outside the supplied threshold; those outcomes have the meanings stated above.
Alternative or Complementary methods
Choose Gross Revenue Retention for this operation: Compute gross revenue retention excluding expansions and new customers. For a complementary task, use Net Revenue Retention for this operation: Compute net revenue retention including expansion within the starting customer cohort.
Further background: Billing analytics dashboard.
References
-
Billing analytics dashboard — Stripe
-
Logo Revenue Churn — tool.io
Similar or alternative tools
- Gross Revenue Retention
Compute gross revenue retention excluding expansions and new customers.
- Net Revenue Retention
Compute net revenue retention including expansion within the starting customer cohort.