Churn

Types of churn

Customer churn: % of customers canceled in a period.

Revenue churn: % of MRR lost from downgrades and cancellations (before expansion).

Benchmarks

Monthly logo churn: SMB < 2–3%; Mid < 1–1.5%; Enterprise often < 1% (but slower sales).

GDR target > 90–95% annually in healthy B2B SaaS.

Worked example

Logo churn: start 1,000 customers, lose 25 → 25/1,000 = 2.5% for the month.

Gross revenue churn: start $100k MRR, lose $8k → 8%.

Common pitfalls