Retention

The cost of churn

2pp difference = $744K gap

Company A — 5% monthly churn

$148K MRR at 24 months • 640 customers lost

5%

Company B — 3% monthly churn

$210K MRR at 24 months • 380 customers lost

3%

The gap at month 24

$62K MRR × 12 = $744K annualized

$744K

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