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1 minute read
"Our churn rate is 15%." Ouch.
When I ask executives how they calculate this figure, nearly all reveal they're only measuring logo churn—completely missing the revenue impact of downgrades, scope reductions, and underutilized services.
ProfitWell's Retention Analysis found that the average B2B company's revenue churn exceeds their logo churn by 38%, creating a massive blindspot in growth projections.
This oversight is costly. According to Bain & Company, a mere 5% increase in customer retention can increase profits by 25% to 95%. Yet Forrester discovered that only 18% of companies have a comprehensive retention program with clear visibility into churn risk factors.
The true picture of customer health requires measuring multiple dimensions:
- Logo retention: Are customers staying or leaving entirely?
- Revenue retention: Is contract value growing, shrinking, or staying flat?
- Product utilization: Are customers actively using what they've purchased?
- Net Promoter Score: Would customers recommend you to others?
- Expansion potential: Could existing customers buy more from you?
Gainsight's Customer Success Study revealed that companies tracking all five dimensions achieve net revenue retention rates of 120%+ (meaning they grow by 20% annually even without new logos), while those tracking only logo churn average just 92% (meaning they shrink by 8% annually despite retention efforts).
Even more concerning, HubSpot Research found that 80% of customers who leave do so without ever registering a formal complaint—they simply don't renew. The warning signs were present in their engagement data, but most companies lacked the systems to monitor and respond to these signals.
Having a Customer Churn Rate Report helps you see past basic metrics to provide a comprehensive view of customer health across all these dimensions. Our approach integrates product usage data, service interactions, financial trends, and satisfaction scores to identify at-risk accounts before they consider leaving.
