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Table Figure 1 Growth that compounds

The customer churn diagnostic card

Distinguish logo attrition from revenue defection and map voluntary dissatisfaction against involuntary payment failures.

Churn dimensionPrimary metricRoot cause mechanismManagement response
Voluntary logo churnCustomer cancellation %Product dissatisfaction, wrong ICPProduct redesign, onboarding fix
Involuntary logo churnPayment failure cancellation %Expired cards, gateway rejectsDunning automation, card updater
Gross revenue churnLost contract ARR %Enterprise budget cuts, consolidationExecutive sponsorship, value reviews
Contraction churnDownsell and seat reduction %Over-provisioning, organizational down-sizingUsage monitoring, rightsizing packages
Unprofitable churnNegative-margin defection %High service burden, aggressive discountsStrategic offboarding, margin protection

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Reference & Evidence

Source: Author's churn-governance framework grounded in customer retention economics from Reinartz and Kumar (2000), Lemmens and Gupta (2020), and Mulhern (1999).