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Customer vs revenue churn — which matters?
Both. Customer churn tells you how many logos you're losing. Revenue churn tells you how much money you're losing. If you lose 10 small customers and gain 2 big ones, customer churn looks bad and revenue churn looks great. The reverse is also possible. Track both.
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What does a 1pt improvement actually mean?
At the inputs above, dropping net churn from 1.08% to 0.08% means roughly ~$2,400/mo of MRR retained — which compounds. Over 12 months that's ~$30k of recovered ARR. Over a 3-year contract life, multiply by retention math.
Cohorts that retain > 100% net (i.e. expansion exceeds churn) are the gold standard. That's why best-in-class SaaS aims for negative net churn — and why expansion revenue is so valuable.