Retention reported by customer count can stay flat while a third of the revenue inside those same accounts quietly walks out.
SBy Steve··5 min read
A familiar pattern: churn is reported monthly, it is low, it has been low for two years. Acquisition is up. Revenue is flat. The conclusion drawn is almost always that the new customers are smaller than they used to be, or that sales is bringing in the wrong kind of work. Sometimes that is true. More often, the leak is inside the accounts that never left. The problem is arithmetic. A churn rate counts customers. Revenue does not arrive in customers, it arrives in pounds, and those pounds are distributed…
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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.