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April 8, 2025

The Hidden Revenue Killer: Churn You Gift-Wrapped

The Hidden Revenue Killer: Churn You Gift-Wrapped
# Data
# Revenue
# Sales Strategy

No More Gift-Wrapped Churn: How to Align Teams, Fix GTM Gaps, and Grow Smarter

Heather Holst-Knudsen
Heather Holst-Knudsen
The Hidden Revenue Killer: Churn You Gift-Wrapped

The Hidden Revenue Killer: Churn You Gift-Wrapped & Other War Stories From the Revenue Trenches

If you’re a CEO, CFO, CRO, or senior revenue-critical exec operating in the information and data economy - events, media, data/information services, marketplaces and others, you’re not just riding the revenue rollercoaster—you’re trying to build a brand new track while the train’s still moving.

As we move through 2025, the economic climate is anything but stable. Tariffs are rattling markets, demand signals are softening, and the cost of doing business just keeps climbing. Add that to bloated sales cycles, misfiring GTM teams, and pipeline inefficiencies, and you’ve got a full-blown commercial productivity dilemma on your hands.

And it’s not just anecdotal. According to SBI’s 2025 CEO Value Creation Pulse Report:

  1. Nearly 70% of CEOs hit or exceeded their 2024 revenue goals, yet only 43% report accelerating demand heading into this year.
  2. 54% now prioritize earnings over growth, reflecting a major pivot toward EBITDA and bottom-line results.
  3. The focus is shifting fast—from adding more sellers to amplifying the productivity of existing teams.

Translation? Growth at any cost is out. Profitable, efficient, predictable, and scalable growth is in.

This is the modern CEO mindset:

“Don’t show me more headcount—show me how you’re getting more yield from what we already have.”

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GTM inefficiency is now seen as a strategic liability. CEOs are under pressure to streamline execution, tighten pipelines, and improve deal velocity—not with more hustle, but with smarter infrastructure. Commercial productivity is the new battleground.

Media players like Newsweek are proving what’s possible. Under CEO Dev Pragad, they turned a struggling brand into a digital revenue engine—scaling to $90M in revenue with a 20% margin in 2024 by aligning editorial, advertising, and ops around data-driven decision-making.

At the same time, AI is moving from shiny object to strategic weapon. The most forward-thinking CEOs aren’t looking at AI to cut costs—they’re using it to supercharge rep productivity, automate low-impact work, and give GTM teams an X-ray vision of their pipelines.

So, if you still think retention is just a post-sale metric, think again. Retention is the starting point for building a smarter, more efficient growth engine.

This blog is part of a series designed as a tactical guide for building recession-proof, data-driven, high-performance revenue systems. Consider it your ultimate CEO cheat sheet—strategic, precise, and highly actionable.

What we will cover over the next few weeks:

  1. Reducing Customer Churn
  2. Improving Pricing Power and Managing Discounting and Value-Add
  3. IIncreasing Expansion and Cross-Sell
  4. Identifying and Eliminating Revenue Leakage
  5. Improving Sales Efficiency
  6. Aligning Revenue-Critical Teams
  7. Developing Leading KPIs for Growth
  8. Using Predictive Analytics to Control the Forecast (and not just chase it)

Let’s kick it off with the one that unlocks all the others...

Retention: The New Revenue Power Move

Customer retention isn’t just a post-sale metric—it’s your company's stock ticker for health, scalability, and enterprise value. High retention = high LTV = high enterprise value. Low retention? You're building a business with a leaky bucket.

We get it—some churn is inevitable. Marketing budgets shrink. Decision-makers change. Companies get acquired, shuttered, or reorganized. But when churn spikes, it’s more than a revenue hit—it’s a warning flare.

Let’s call out the downstream chaos churn causes:

  1. Sales, BD, and marketing are forced into reactive mode—just trying to plug holes, not move forward.
  2. Customer success scrambles to create last-minute “save plays” instead of focusing on strategic renewals.
  3. Ops bends over backward to deliver salvaged programs, sometimes at a loss.
  4. Brand reputation takes a hit from unhappy clients turned anti-referral machines.

Internally? Churn breeds blame games, silos, and toxic team culture.

What Causes Churn—and What You Can Actually Do About It

Let’s break this down Revenue Room™-style. Churn causes fall into three categories:

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I don’t know about you, but I like spending my time on things I can control. That means focusing on the middle and right-hand columns.

Here’s the framework we live and breathe in The Revenue Room Bootcamp:

Predictive Data → Preemptive Action → Measurement & Accountability → Team Alignment → Execution

Sound intense? It is. But it works.

Pro tip: Treat closed/lost customers like you do prospects—dig in and analyze them. Group them by the reason you lost them. You might be surprised (and maybe a little annoyed) to see just how many losses were preventable—and how much revenue you essentially wrapped up nicely with a bow and gave away.

And remember: Retaining the logo ≠ retaining the revenue.

How You Know It's Churn You Gift-Wrapped

Let’s get real. If you're losing accounts for reasons like these, you didn't just lose the deal—you practically tied it up in a bow and handed it to your competitor.

  1. Wallet share theft: Your team snoozed, and the competitor swooped. You gift-wrapped that renewal and walked it over.
  2. Product performance: The program didn't deliver, and no one flagged it in time. That's not just a miss—it's a preventable faceplant.
  3. Support = ghosted: If your client's “support” experience is an auto-reply and a generic checklist, don't act shocked when they bounce.
  4. Perceived value: You sent them a post-campaign report full of metrics but no story. Spoiler alert: no one read it.
  5. Wrong solution fit: They needed real-time, intent-based leads, and you sold them a static webinar. C’mon.
  6. Poor customer fit: That big-name client was never a match, and your sales team knew it. Now everyone's stuck managing the fallout.

Let's Not Forget The Silent Churn In Your House

And while we’re on the subject of “avoidable,” let’s talk about the silent churn happening inside your own house: your sales reps who have mentally quit but are still warming a seat. The warning signs? They’re not subtle. Diminishing activity levels, fewer meetings booked, stagnant pipeline movement—all hiding in plain sight behind a smile and a few Slack emojis. They think you won’t notice. You should.

When a rep coasts through a quarter—or worse, two—while quietly planning their exit, the revenue damage is massive. Missed deals. Ghosted accounts. Rotting opportunities. The kind of fallout that doesn’t just cost you this quarter—it handicaps your next one, too.

Let’s not sugarcoat it: ignoring the early signs of sales team attrition risk is revenue negligence. This is churn. Internal, invisible churn. And if you're not tracking it, you’re gift-wrapping more than just customers—you’re handing over your forecast, too.

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Six Real-World Retention Plays That Work

Retention is not a department. It’s a business mindset. Here’s how to build one:

ONE: Diagnose the Root Cause: Use predictive analytics to identify underperforming accounts before the renewal period. Look for leading indicators like declining engagement, dropped NPS, missed deliverables, or lagging sales support.

TWO: Create a Cross-Functional Retention Task Force: Make retention everyone's job. Include voices from sales, success, marketing, product, and ops. Focus them on:

  1. Customer value realization
  2. Average contract value expansion
  3. CX journeys and feedback loops
  4. Unmet need identification
  5. Churn risk flagging

THREE: Connect the Dots with Data: Link contract performance data to renewal/expansion pipeline health. When a deliverable misses the mark, trigger alerts and escalation protocols. Don't wait until 30 days before renewal to care.

FOUR: Align Metrics and Comp: Variable comp should reflect the entire revenue lifecycle. Set KPIs for:

  1. Sales: Retention and expansion revenue
  2. CS: Retention rate, expansion opportunities sourced
  3. Ops: On-time, in-full delivery and CSAT/NPS

FIVE: Build a CS Dream Team: Customer success isn’t customer service. Build a strategic CS org with:

  1. Account journey plans
  2. Proactive onboarding
  3. Quarterly value checkpoints
  4. Clear upsell/cross-sell plays

SIX: Measure Relentlessly and Broadcast Best Practices: Track retention performance across brands, sectors, and delivery teams. Use scorecards, dashboards, and benchmarking tools. Make your winners visible—and your laggards accountable.

So What's Next?

Sign up for The Revenue Room™ Newsletter to receive more no-fluff insights and these upcoming installments:

  1. The 3 Priorities CEOs must invest in to unlock commercial productivity
  2. Developing Leading KPIs for Growth
  3. Improving Pricing Power and Managing Discounting and Value-Add
  4. IIncreasing Expansion and Cross-Sell
  5. Identifying and Eliminating Revenue Leakage
  6. Improving Sales Efficiency
  7. Aligning Revenue-Critical Teams
  8. Using Predictive Analytics to Control the Forecast (and not just chase it)


Need to unlock commercial productivity in your Revenue Room™ - check out The Revenue Room™ Bootcamp. The next Cohort starts June 13th. Click here to learn more.





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