Churn is 6%. Net revenue retention is 100%. Revenue is flat.

A high customer retention rate and a stagnant revenue base can coexist comfortably, and the reason is usually sitting in the accounts that stayed.

By Steve 4 min read
Abstract bridge artwork for Churn is 6%. Net revenue retention is 100%. Revenue is flat.

A retention number of 94% reads like good news. It is often reported alongside a flat revenue line without anyone noticing the contradiction, because the two figures measure different things and only one of them appears on the dashboard. Customers retained is a headcount. Revenue retained is money. When a business grows its customer base by replacing small departures while its largest accounts quietly shrink, the headcount metric will look healthy for years while the money metric erodes underneath it. The gap between the two is where most of the…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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