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The PLG Glossary

The PLG Glossary

Revenue

Revenue Churn

Definition of

Revenue Churn

Revenue Churn

Revenue Churn

Revenue churn is a term used in business to describe the rate at which a company is losing revenue due to customer cancellations or non-renewals. It is a metric used to measure the performance of a business or organization over a certain period of time. Revenue churn is calculated as a percentage of total revenue lost, and it is an important metric for businesses to track because it can indicate the health and stability of a company. For example, if a company has a revenue churn rate of 10%, it means that they are losing 10% of their revenue due to customer cancellations or non-renewals. This could be an indication that the company needs to improve their customer retention strategies or address underlying issues that may be causing customers to leave. By tracking revenue churn, businesses can make informed decisions about how to improve their overall performance and sustain growth over time.