Churn is 6%. The revenue you lost is 19%.

Counting the customers who left and counting the money that left produce two different numbers, and the gap between them is usually the more informative one.

By Steve 5 min read
Abstract bridge artwork for Churn is 6%. The revenue you lost is 19%.

A business with 100 customers loses six of them over a year and reports 94% retention. The finance pack shows recurring revenue down by almost a fifth. Both numbers are correct. They are measuring different things, and only one of them is a claim about the health of the business. Counting logos is the default because it is the number the CRM produces without being asked. It treats every account as one unit. Revenue does not work that way, and in most small and mid-sized businesses the distribution of revenue…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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