Customer Churn and Conversions

Customer Movements happen in the real world in form of

  • Customer Churn - tells you how good you are at retaining customers. Customers do not renew their contracts and leave
  • Upgrades & Downgrades -  Customers can move between plans upgrading or downgrading, e.g. they convert from lead to free trial, move from a free trial to a paid plan, or by downgrading, e.g. they upgrade from a a paid plan to less expensive or free plan. 

Besides keeping churn low, it is Upselling which matters. If you're able to move your customers through your pipeline and upsell your customers onto higher-value packages, and sell additional recurring seats/users/storage, you can combat the effects of customer churn.

Learn how to

  • Add Customer Churn 
  • Add Upselling Conversion Rules   

Add Customer Churn upon Contract Renewal

Customer Churn (also known as "Logo Churn") measures the rate at which your existing customers do not renew their contracts/subscription to your service. 

As customers can only churn after a contract expires and you can set different contract duration for your revenue streams, Lean-Case captures the Customer Churn upon Contract Renewal. Contract Renewal is based on the Contract Duration and is handled dependent on the revenue type of the revenue stream

  • for Subscription Revenue Streams, the Contract Duration is dependent on the Billing Period
  • for all other Revenue Streams, the Contract Duration can be entered

The table below describes in detail how revenue streams handle Contract Duration:

  • which input field defines the Contract Duration
  • what the default value for the Contract Duration in Month is
  • what the default value for the Customer Churn Rate upon Renewal is

Revenue Model

Contract Duration determined by ...

Default Value for "Contract Duration in Months"

Default Value for "Customer Churn Rate upon Renewal"

Service Model

Field "Average Contract Duration"




Field "Billing Period"

Monthly = 1 mths
Quarterly = 3 mths
Yearly = 12 mths



Field "Average Contract Duration"

36 months



Field "Average Contract Duration"

36 months


The Churn Rate upon Customer Renewal can be be converted to a Monthly Churn Rate using the following formula:

  • Monthly Churn Rate % = 1 - (( 1 - ChurnRateUponRenewal% ) ^ (1/ContractDuration))

Add Upselling Conversion Rules

Conversion Rules are the key to connect revenue streams in Lean-Case and simulate upselling logic, e.g. to simulate conversions for different business models:

  • SaaS Funnel Conversions: Leads into Signups, Signups into Free trials, Free Trials into Basic Customers and Basic Customers into Enterprise Customers
  • eCommerce Funnel Conversions: Traffic into Shoppers, Shoppers into First-Time Buyers and First-Time Buyers into Repeat Buyers

There are two types of conversion rules which can be used to connect revenue streams: 

  • One-Time Conversions: only convert a percentage of the New Customers (from Forecast and Upsales) generated in a specific month, e.g. 10% of New Trial Customers generated in any month convert into Paying Customers 3 month later (i.e. 90% of Trials generated never convert)
  • Monthly Conversions: convert a percentage of Customers at the Beginning of each Month, e.g. 1% of Trial Customers generated at any earlier time convert into Paying Customers (i.e. in the long run every trial generated will convert - for this reason the percentage should be kept low)

Conversion Rules are connecting Revenue Stream by linking two Contract Plans. - a source plan and a destination plan. If a Revenue Stream has more than 1 Contract Plan, the Churn & Conversion Tab also shows one sections per Contract Plan to manage churn and add conversion rules. This means that every Conversion Rules is shown in 2 two sections (the section for its Source Contract Plan and the section for its Destination Contract Plan).

To add a new Conversion Rule, enter the following parameters:

  • Type of Conversion Rule (One-Time or Monthly Conversion Rule)
  • Conversion Rate in %
  • Source Revenue Stream - (Lost Customers due to Upsale)
  • Plan in Source Revenue Stream - (Lost Customers due to Upsale)
  • Destination Revenue Stream - (New Customers due to Upsale)
  • Plan in Destination Revenue Stream - (New Customers due to Upsale)
  • Delay in Months for Conversions (disabled for Monthly Conversion Rule)


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