The Churn Divergence Detector

Computes logo churn and revenue churn separately and compares them. Losing 5% of logos is fine; losing 5% of logos representing 40% of MRR is a dealbreaker. The divergence between the two is itself the signal — and it is the single most common way a seller's headline churn understates real revenue erosion.

Part of the ChurnLens 5-Risk Buyer-Side Method →

What it is

Computes logo churn and revenue churn separately and compares them. Losing 5% of logos is fine; losing 5% of logos representing 40% of MRR is a dealbreaker. The divergence between the two is itself the signal — and it is the single most common way a seller's headline churn understates real revenue erosion.

What it looks for in the data

The detector decomposes the target's customer base and computes two rates side by side: logo churn (what fraction of customers left) and revenue churn (what fraction of MRR left). It then surfaces accounts where the revenue impact of churn is disproportionate to the logo count. The signal is the gap, not either number alone.

Buyer-side signal: this lens surfaces a risk that sellers rarely volunteer because it makes their headline number look worse. In a SaaS acquisition, the gap between what this lens finds and what the CIM discloses is directly negotiation-relevant.

Related diagnostic lenses

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80%
Overpay for Churn
4.2×
Real vs Reported
$340K
Avg Overpayment
23
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