Key Performance Indicators Examples
Revenue Churn / MRR Churn
Revenue Churn, also known as MRR (Monthly Recurring Revenue) Churn, is a metric used to measure the rate at which a company is losing revenue from its customers. It is typically expressed as a percentage and is calculated by taking the total amount of revenue that was lost from customers during a specific period (usually a month) and dividing it by the total amount of revenue that was generated during the same period.
The formula for calculating Revenue Churn is:
Revenue Lost from Cancelled Contracts / Total Revenue x 100 = Revenue Churn (%)
For example, if a company generated $10,000 in revenue in a month and lost $2,000 in revenue from cancelled contracts, the Revenue Churn would be:
$2,000 / $10,000 x 100 = 20%
This means that 20% of the company’s revenue was lost from customer cancellations during that month. A low Revenue Churn rate is generally considered to be a good sign as it indicates that a company is retaining its customers effectively, while a high Revenue Churn rate may be a sign of a problem that needs to be addressed
Measure what matters for your business with KPIs
Track business performance with real time key metrics against targets in one place without the need for multiple dashboards or reports