Insights

Perspectives on the economics of churn, post-sale revenue strategy, and the business case for Customer Success.

Veronique Montreuil Veronique Montreuil

The Churn Tax: What Your Churn Rate Is Not Telling You

Most companies measure churn as a percentage on a dashboard. The real cost has three layers: the lost revenue, the sales dollars spent replacing it, and the expansion revenue those customers will never generate. At $300M ARR, the total Churn Tax runs $38.3M per year, compounding to $125M over 3 years. Your churn rate is only one-third of the story.

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