Churn

The rate at which customers cancel or downgrade, expressed as a percentage of revenue or customers per period.

Logo churn counts customers who cancel; revenue churn weights by contract size. Both are usually measured monthly or annually. Healthy SaaS churn varies by segment: SMB-focused tools tend to run 3 to 5 percent monthly logo churn, mid-market 1 to 2 percent, and enterprise below 1 percent annually. Buyer-side: a vendor with high churn signals product-market issues, support problems, or aggressive misselling that catches up at renewal.