The churn is 18%. Fourteen points happen before day 90.

An annual churn figure can describe two completely different businesses, and the retention spend most firms make only works on one of them.

By Steve 5 min read
Abstract bridge artwork for The churn is 18%. Fourteen points happen before day 90.

A single churn percentage is one of the least informative numbers a business can put on a board pack. Consider two firms, each losing 18% of customers a year. In the first, losses are spread evenly: a few accounts drift away each month, mostly after long, reasonably profitable relationships. In the second, fourteen of those eighteen points evaporate within ninety days of signing, and the survivors stay for years. These are not variations on a theme. They are different problems with different causes, different economics and almost no overlap in…

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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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