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System five

Retention & Expansion.

Do customers stay and buy more? It covers churn and renewal, expansion and the customer success team that holds both together.

Why it matters.

A company that says it isn’t growing fast enough often has a retention problem rather than a sales problem, because customers are leaving or staying flat as fast as new ones arrive. Growth that leaks out of the bottom of the funnel looks like a demand shortfall in the board deck.

Retention is also the cheapest growth a company has, since the customer has already been won once. We examine it last because it depends on every system before it, but its numbers often explain the miss first.

What it covers.

Retention & Expansion has three parts, and each has its own page.

  • Churn and renewal.

    Which customers leave, when and why, and how renewals are run.

  • Expansion and account growth.

    Whether customers buy more over time, and who in the company is responsible for making that happen.

  • Customer success.

    The team and the process that keep customers getting value, and whether they are measured on retention or on activity.

What we look at in the Diagnostic.

We read the renewal data and the CRM for who leaves, who expands and what happened before each, and we speak with customers who left as well as the ones who stayed. In Retention & Expansion we diagnose why customers leave or stay flat. Where the cause sits in the product or in service delivery, we say so and leave the remedy to the people who own those functions.

What we rebuild.

In a turnaround engagement, an operator who has run retention sits over it. We set how renewals and expansion are owned and measured, rebuild the customer success motion around the customers worth keeping, and connect it to what Commercial Strategy says about who the company should sell to in the first place. What works goes into the playbook and the operating system, so your team can see churn coming and act on it after we leave.

The Diagnostic

Start with what is true.

The Diagnostic examines Retention & Expansion fifth, in eight weeks at a fixed fee of $95,000.