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.
Metrics in this report
Expansion Rate
30percent
Example annual expansion target for SaaS company, used to illustrate lost expansion opportunity from churn