The customer churned in month eleven. The decision was made in week three.

Annual contracts hide the moment a customer disengages, and by the time the renewal conversation happens, everyone is investigating the wrong quarter.

By Steve 5 min read
Abstract bridge artwork for The customer churned in month eleven. The decision was made in week three.

A customer signs a twelve-month agreement in January. In November, they decline to renew. The post-mortem examines the autumn: a support ticket that took too long, a price increase, a competitor who called at the right moment. Everyone involved is looking at the last eight weeks of a relationship that stopped working in February. This is the structural problem with annual contracts. They convert a continuous decision into a single, deferred event. The customer’s engagement can decay steadily from the second month onward, and none of that decay shows up…

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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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