Practice SaaS churn vocabulary: monthly churn rate, revenue vs. logo churn, net revenue retention, cohort churn analysis, and churn prediction models.
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1 / 5
'Monthly churn rate is 2.3%.' This means that each month, 2.3% of customers:
Monthly churn rate is the percentage of customers who cancel in a given month. 2.3% monthly churn compounds to ~25% annual churn, a significant retention challenge.
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What is the difference between 'revenue churn' and 'logo churn'?
Logo churn counts the number of customers lost. Revenue churn measures the MRR lost. A company can have low logo churn but high revenue churn if large accounts are leaving.
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'Net Revenue Retention (NRR) > 100% means _____.' What does this indicate?
NRR > 100% (also called 'negative net churn') means expansion revenue from upsells and cross-sells in existing accounts exceeds revenue lost from churn — a very healthy SaaS signal.
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'The churn cohort analysis shows month _____ is the risk point.' At which month do users most commonly churn?
Month 3 is the example given as the churn risk point. Cohort analysis groups customers by start month and tracks their churn over time, revealing when customers are most likely to leave.
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A 'churn prediction model' is used to:
A churn prediction model uses product usage data, engagement signals, and support history to identify accounts at high risk of churning, enabling proactive intervention by customer success teams.