totesmcgrotes

Sr Account Manager

Normal Practice Impact of Churn

Hey WR is it normal practice for Growth AE's / Rev generating AM's comms to be defucted direcrly by churn?

Specifically churn that takes place in their book (not necessarily deals that have been closed by the rep)? is normal practice for this to impact on the monthly, quarterly and annual number? Os there usually an acceptable level / amount of churn to be expected (10%) etc?

Eg Target = 1k

Deal closed = 1k

Churn = 1k

Quotta attainment = 0

Any insight much appreciated 🫡

🧠 Advice

🍾 Commission

😜 contracts

11 comments

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Sunbunny31

Arsonist

Sr Sales Executive 🐰

Definitely seen this before in accounts where the rep is responsible for the renewal in addition to net new sales or growth.
The worst is when the account renewal is in January and it's handed to you end of December because the wily team that owned the relationship the year before was able to get the account moved elsewhere and off their books.
Big companies are like the Lord of the Flies during the annual planning sessions.
BTW, the typo, "defucted", actually is perfect, because it combines two words that accurately reflect the state of affairs for the affected rep. Bravo.

CuriousFox

WR Officer

🦊

I'm actually responsible for new biz and renewals. Also at a big ass company. It ain't for the weak.

Sunbunny31

Arsonist

Sr Sales Executive 🐰

Nope, it isn’t. It’s fair when you have a fighting chance to impact the renewal in a positive way. It stinks when you have one upcoming that was mishandled or ignored by someone else, and you have no chance.

CuriousFox

WR Officer

🦊

hashtag preach

Diablo

Politicker

Sr. AE

Churn is expected in any business and it’s common. I don’t know about other companies but we have a set $$ value that team is expected to remain under.

Space_Ghost20

Executive

Account Executive

I'm an AE with a monthly quota (measured in MRR). We are responsible for churn for the first 90 days after closing a deal. If I sell a $50 MRR subscription, and the next month that customer decides to cancel, or their card is expired or has insufficient funds, that $50 will be deducted from my sales total the month that account churned.

At our company, the expectation is that 15-20% will likely churn. Most of the time not due to anything we have control over; we sell to microbusinesses and self-employed entrepreneurs, so insufficient funds and general forgetfulness is a fairly common occurrence, unfortunately.

Justatitle

Big Shot

Account Executive

Are you an AM or an AE with a book to their name, why do accounts that you haven't closed come into your name?

totesmcgrotes

Opinionated

Sr Account Manager

I’m an AM. All my accounts are current customers. What I was referring to is that if one of my accounts cancels a product even if I did not sell them that product. I get impacted by the churn. I would understand if the customer canceled a product that I had sold them.

Justatitle

Big Shot

Account Executive

Ok, I understand it better now, yeah this sucks.

Kosta_Konfucius

Politicker

ERP Sales

I feel like this is somewhat a normal practice for AM/CSM

pirate

Big Shot

Account Executive

Are you responsible for maintaining existing relationships?