What is the difference between customer churn and revenue churn? - Woofresh

What is the difference between customer churn and revenue churn?

All QuestionsCategory: PaymentsWhat is the difference between customer churn and revenue churn?
asked 2 years ago

What is the difference between customer churn and revenue churn?

1 Answers
answered 2 years ago

The customer churn is calculated by the number of customers who cancels the subscriptions of your services whereas revenue churn indicates that how much recurring revenue you have lost in a month.

Revenue churn and customer churn are related to each other. If customer churn rate will fluctuate then the revenue churn will also be affected.

Revenue churn will increase when the customer will cancel or downgrade their subscriptions.

Let me make it clear with an example:-

Suppose if your company has lost a small number of customers, but some of those subscribed the most expensive subscription plans, then the customer churn rate might be lower but the revenue churn rate will be higher and vice versa.

1 Answers
answered 2 years ago

The customer churn is calculated by the number of customers who cancels the subscriptions of your services whereas revenue churn indicates that how much recurring revenue you have lost in a month.

Revenue churn and customer churn are related to each other. If customer churn rate will fluctuate then the revenue churn will also be affected.

Revenue churn will increase when the customer will cancel or downgrade their subscriptions.

Let me make it clear with an example:-

Suppose if your company has lost a small number of customers, but some of those subscribed the most expensive subscription plans, then the customer churn rate might be lower but the revenue churn rate will be higher and vice versa.