The renewal rate is 91%. Revenue from those customers fell 11%.

A high renewal rate can sit comfortably on top of a shrinking customer base, and most reporting is built to hide it.

By Steve 4 min read
Abstract bridge artwork for The renewal rate is 91%. Revenue from those customers fell 11%.

Two businesses report the same headline: 91% of customers renewed this year. In the first, revenue from that base grew 14%. In the second, it fell 11%. The renewal rate is identical. The trajectory is not remotely comparable: one business needs new customers to grow, the other needs new customers to stand still. The gap between those two outcomes is contraction, and it is the least-tracked number in most subscription, retainer and repeat-order businesses. Churn gets attention because it is loud: a customer leaves, someone notices, there is often a…

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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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