Definition
The amount of recurring revenue lost to cancellations and downgrades in a period, expressed in currency rather than customer count.
Why it matters for growth
Dollar churn is what actually threatens the P&L; a business can tolerate losing many small customers but not its highest-paying ones.
Example
A company loses only 3 customers in a month, but they were its largest accounts, producing a dollar churn far worse than the logo count suggests.
FAQ
- What is Dollar Churn?
- The amount of recurring revenue lost to cancellations and downgrades in a period, expressed in currency rather than customer count.
- Why does Dollar Churn matter for growth?
- Dollar churn is what actually threatens the P&L; a business can tolerate losing many small customers but not its highest-paying ones.
- What is an example of Dollar Churn?
- A company loses only 3 customers in a month, but they were its largest accounts, producing a dollar churn far worse than the logo count suggests.