The client left in month eleven. The decision was made in week two.

Churn is a lagging indicator with an unusually long fuse: which is why the reason you recorded is rarely the reason it happened.

By Steve 5 min read
Abstract bridge artwork for The client left in month eleven. The decision was made in week two.

A client gives notice in month eleven. The account manager writes up the reason: budget pressure, a change of priorities, a competitor came in cheaper. It goes into the CRM as a lost-to-price or lost-to-budget, and the retention plan that follows is built around price and budget. The problem is arithmetic, not honesty. Cancellation is an event. The conditions that made cancellation easy were usually set months earlier, and almost always during onboarding. By the time the notice arrives, the visible causes are recent ones, a service failure, a renewal…

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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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