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Business term

Churn

Customers lost over a period

Definition

The proportion of customers or revenue lost during a period, used as the standard retention measure for subscription businesses.

In more detail

Customer churn and revenue churn differ. A business can lose many small accounts while revenue grows, so the two figures are quoted separately and are not interchangeable.

Churn windows must be stated. A monthly figure and an annualised figure describe the same business very differently.

Glossary entries are general explanations, not advice. Where a term appears in a contract or policy, the definition in that document governs.