onlycfo.io · 2023-01-03 · 1248d

2023: Year of Customer Success & Gross Churn

The article argues that 2023 will be a pivotal year for SaaS companies as ZIRP-era excess unwinds and macroeconomic headwinds expose poorly-managed customer bases. Gross churn—not net revenue retention—is the critical metric because churned ARR represents permanent revenue loss plus lost expansion opportunities and second-order referral revenue. Customer success teams must prioritize retention efficiency and strategic churn management rather than pursuing growth at all costs.

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Metrics in this report

Expansion Rate

30percent

Example annual expansion target for SaaS company, used to illustrate lost expansion opportunity from churn