Gross Churn

Gross Churn is the percentage of revenue lost due to customers cancelling or downgrading their subscriptions.

These categorizations are based on the Gross Revenue Retention (GRR) benchmarks:

Segment/Channel	Excellent (Low Churn)	Good (Acceptable Churn)	High (Concerning Churn)
Customer Segment (by ACV)
Enterprise (>$150k ACV)	< 2%	2% - 3%	> 3%
Mid-Market ($5k-$150k ACV)	< 4%	4% - 5%	> 5%
Small Business (<$5k ACV)	< 8%	8% - 10%	> 10%

Sales Channel (GTM Motion)
Dedicated Touch	< 2%	2% - 3%	> 3%
High Touch	< 3%	3% - 5%	> 5%
Medium Touch	< 4%	4% - 6%	> 6%
Low Touch	< 12%	12% - 15%	> 15%
No Touch (Self-Serve)	< 10%	10% - 15%	> 15%

Excellent churn rates represent strong customer loyalty and effective retention strategies, often exceeding typical benchmarks for the segment or channel.

Good churn rates are generally within an acceptable range and align with typical benchmarks. While there's always room for improvement, these rates likely indicate a reasonably healthy business.

High churn rates are concerning and suggest potential issues with product-market fit, customer satisfaction, onboarding, value delivery, or competitive pressures. These rates warrant investigation and action.

Enterprise and Dedicated Touch models typically require the lowest churn rates due to the high value and cost associated with each customer

Low Touch and No Touch models may tolerate slightly higher churn rates due to the higher volume of customers and potentially lower ACV [e.g., our conversation]. A Low Touch GTM motion typically targets a GRR of 85%, implying a 15% churn rate

The benchmarks can vary depending on the specific industry, market conditions, and the maturity of the business.

It is crucial to track your churn rates over time and compare them to your own historical performance and relevant industry benchmarks.

Focusing on delivering recurring impact is essential for achieving and maintaining excellent retention rates across all segments and channels