Renewal rate is 96%. The average account is smaller than it was last year.

Logo retention counts customers. Revenue retention counts money. When the two diverge, the growth arithmetic changes long before the churn report notices.

By Steve 5 min read
Abstract bridge artwork for Renewal rate is 96%. The average account is smaller than it was last year.

A retention number that looks healthy is usually counting the wrong thing. Ninety-six per cent of customers renewed. Four per cent left. The report is green, the account managers are congratulated, and the growth plan assumes the base holds while new business stacks on top of it. Then someone divides revenue by customer count over a three-year window and finds the average account has been shrinking the whole time. Nobody left. Everybody bought less. Churn is an event. Contraction is a drift. The reason logo retention gets measured and revenue…

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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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