Stop revenue contraction (fix this)
Churn is when a customer leaves and takes 100% of their revenue with them.
Contraction, however, is when a customer stays, but pays us less, and can often be traced to ineffective onboarding.
Poor onboarding disrupts the customer's momentum coming out of the-sale and slows post-onboarding adoption, keeping them from getting all the value they hoped they'd get.
This typically results in discounts or downgrades at renewal, or what we call revenue contraction.
To reduce contraction, improving customer onboarding is key.
This strategy may not salvage at-risk customers, but it prevents a new set from reaching this point.
Our upcoming CSM training program, beginning on 12-June, is an intense 2-week program hyper-focused on Customer Onboarding.
Learn more and sign-up here.
~Lincoln
BTW: While we can sometimes trace churn to a totally failed onboarding experience, thankfully that's fairly rare.
What's FAR more common isn't a totally failed onboarding experience, but one that just didn't work that well.
That, unfortunately, is extremely common, and leads to contraction, which is a massive drag on NRR.
If you have a lot of contraction at renewal, the fix is better onboarding.
Our next CSM training will help you do just that.
Learn more and sign-up here.
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Lincoln Murphy
I help SaaS companies Maximize LTV through Customer-centric Upselling
Oct-20 - Nov-7. Learn more and sign-up here. Leading a Customer Success org in 2026 requires more than just operational know-how. You need a strategic approach to driving NRR, building high-performing teams, and proving CS's value to the executive suite. Introducing: Strategy & ScaleOur completely reimagined Head of CS training program, running October 20 - November 7 at Impact Academy. Over three weeks, you'll learn about the three pillars that separate great CS leaders from everyone else:...
Our next Customer Onboarding training starts tomorrow, Tuesday, April 22, 2025. Learn more about the program and sign-up here. Onboarding is arguably the most important customer lifecycle stage. In this program you'll learn how to get your new customers to do the things they need to do to get this still-fragile relationship off to a strong start, setting everyone up for long-term success (the customer... and your CS team). Specifically, we'll cover: Lifecycle stage metrics Handover management...
Our next Customer Onboarding training starts on Tuesday, April 22, 2025. Learn more about the program and sign-up here. Onboarding is arguably the most important customer lifecycle stage. In this program you'll learn how to get your new customers to do the things they need to do to get this still-fragile relationship off to a strong start, setting everyone up for long-term success (the customer... and your CS team). Specifically, we'll cover: Lifecycle stage metrics Handover management Time...