Figure 1From “What is customer churn?”
The customer churn diagnostic card
Distinguish logo attrition from revenue defection and map voluntary dissatisfaction against involuntary payment failures.
Figure 1The customer churn diagnostic card
| Churn dimension | Primary metric | Root cause mechanism | Management response |
|---|---|---|---|
| Voluntary logo churn | Customer cancellation % | Product dissatisfaction, wrong ICP | Product redesign, onboarding fix |
| Involuntary logo churn | Payment failure cancellation % | Expired cards, gateway rejects | Dunning automation, card updater |
| Gross revenue churn | Lost contract ARR % | Enterprise budget cuts, consolidation | Executive sponsorship, value reviews |
| Contraction churn | Downsell and seat reduction % | Over-provisioning, organizational down-sizing | Usage monitoring, rightsizing packages |
| Unprofitable churn | Negative-margin defection % | High service burden, aggressive discounts | Strategic offboarding, margin protection |
Swipe or scroll horizontally if the table is wider than your screen.
Source: Author's churn-governance framework grounded in customer retention economics from Reinartz and Kumar (2000), Lemmens and Gupta (2020), and Mulhern (1999).

From the essay
Growth that compounds
What is customer churn?
Customer churn measures account and revenue defection over a defined window. Separate logo churn from revenue churn and voluntary from involuntary loss.
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