Hidden Churn Red Flags
Indicators that reported churn understates the true revenue-at-risk in a SaaS target.
How to use: scan the list against your current situation. Each item you check is a risk worth addressing before it becomes a problem.
- Zombie MRR exceeds 5% of total
- Gross churn masked by expansion (NRR ok, gross high)
- Recent discounting spike in top accounts
- Cohort retention declining QoQ despite stable NRR
- Support ticket volume spiking from top accounts
- Annual plan mix below 40%
What to do if you see these
If more than 2-3 of these flags apply to your churn due diligence tool situation, treat it as a structural issue, not a one-off. The compounding effect of multiple red flags is greater than the sum of the individual risks.
ChurnLens can help: SaaS revenue quality & churn risk due diligence. The platform surfaces these risks automatically so you can act before they escalate.