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UNIT ECONOMICS5 MIN READ

Can expansion revenue save rising churn?

Evaluate whether strong expansion genuinely offsets churn or is masking deeper retention risk.

The comforting headline NRR is above 110%, yet the team keeps hearing more stories about accounts leaving. You need to know whether expansion is broad strength or concentrated camouflage. Retention quality Gross churn -> Expansion breadth -> Concentration risk Treat NRR as a summary, then inspect what kind of customer behavior created it. Shortcut NRR is above 100%, so we are fine You learn whether expansion is resilience or camouflage. A strong net number can hide a weak gross foundation. 01 Gross churn 02 Breadth 03 Concentration Decision 1 Logo churn has risen from 6% to 10% even while NRR…

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