Let’s say I have 10 active customers in a month and 1 cancels. At the customer level that is a 10% churn.
Let’s say my MRR from these 10 customers is a total of INR 5 lakh. And the 1 churned customer accounts for INR 1.5 Lakh. So my revenue churn is 30% at the MRR level.
It is vital for my business to track both types of churn in parallel to really understand what is going on.