Churn is 18% a year. Two thirds of it happens before the third invoice.

Annual churn figures hide when customers actually leave, and the timing changes almost everything about where retention effort is worth spending.

By Steve 5 min read
Abstract bridge artwork for Churn is 18% a year. Two thirds of it happens before the third invoice.

An annual churn number is an average of averages. It tells you how much of the book left over twelve months. It says nothing about when in a customer’s life the leaving happened, and that single distinction tends to separate businesses that fix retention from businesses that spend years managing it. When churn is spread evenly across the customer base, the causes are usually competitive: a rival got better, the category commoditised, the value stopped justifying the price. When churn clusters in the first few months, the cause is almost…

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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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