The cancellation in month eleven was decided in week three

Churn shows up on the renewal report, but the decision that produced it was usually made months earlier, and the retention budget is rarely spent where it was made.

By Steve 5 min read
Abstract bridge artwork for The cancellation in month eleven was decided in week three

A customer gives notice in month eleven. The account manager is surprised; the usage data was unremarkable; the last conversation was cordial. So the business does what businesses do: it builds a save motion. A discount, a call from someone senior, a promise to fix the thing that was mentioned in passing. Some of those saves land. Most of them buy a year and a lower price. The uncomfortable part is that the save was attempted eight or nine months after the decision was effectively made. Contracts create a settlement…

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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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