What is Churn?

Churn measures customer attrition: how many customers or how much revenue a business loses over a set period, often monthly or annually. It is a critical metric for any business with recurring revenue or repeat purchases, since acquiring new customers is typically far more expensive than retaining existing ones.

Churn can be measured in different ways: customer churn counts the number of accounts lost, while revenue churn measures the dollar value of business lost, which can behave differently if larger accounts are more or less likely to leave than smaller ones. Some businesses also track "negative churn," where expansion revenue from existing customers outpaces losses from those who leave.

High churn often signals problems with product fit, service quality, pricing, or competitive pressure, and is closely tied to metrics like customer health scores, which try to flag at-risk accounts before they actually leave. Reducing churn generally has a compounding positive effect on revenue growth over time.

In Lavisho TT, churn is calculated as: Churn Rate = (Customers Lost During Period ÷ Customers at Start of Period) × 100. Client health scoring and AI-driven anomaly alerts help flag accounts showing early warning signs, such as declining visit frequency or order volume, before they show up as churn in reporting.