Churn

Churn is the share of customers or revenue lost over a period. Logo churn counts the number of customers who leave; revenue churn counts the dollars that leave, and the two diverge whenever small accounts cancel while large ones expand. Gross churn measures only what is lost, while net churn nets in expansion from the customers who stay.

The distinction matters because a company can report healthy net revenue retention while quietly losing many small logos, or the reverse. Logo churn is often the earlier read on product-market fit, since dissatisfied small customers tend to leave before large, contracted ones do.

Closelooknet reads logo churn and revenue churn together rather than trusting a single number. In the SaaSpocalypse thesis, seat-based software is especially exposed: when an AI agent absorbs a workflow, the customer does not always cancel outright, they shrink, which surfaces as revenue churn before it shows up as a lost logo.

In practice, a base of 100 customers that loses five posts 5% logo churn; but if those five were small and the survivors expanded, revenue churn can be negative, net expansion despite the lost logos. That gap is why net revenue retention is read right next to it.