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The "False Positive" Crisis

A polished, square metal peg being aggressively forced into a round hole in a thick concrete block. The concrete is cracking from the pressure, and the metal peg is badly dented and deformed
Discover why poor sales discovery is the leading indicator of SaaS churn and how "False Positives" destroy your Net Revenue Retention (NRR)

Winning the Wrong Deal: The Silent Killer of B2B Sales


In the subscription economy, the initial sale is merely the starting line; profitability is determined by retention. However, poor sales discovery often leads to the acquisition of "False Positives" (bad-fit customers who churn at accelerated rates).

The Churn Economics of Poor Discovery & False Positives


The data regarding "False Positives" is catastrophic for unit economics:


  • Compounding Loss: While average annual churn for B2B SaaS is 3.5% to 5%, a monthly churn rate of just 5% compounds to a 46% annual revenue loss.


  • The Voluntary Churn Gap: Approximately 70-80% of churn is "Voluntary," driven by the customer’s realisation that the product does not deliver their "desired outcome".


  • Discovery Deficits: This gap is created during discovery. If sellers fail to uncover the customer’s true definition of success, the customer success team has no benchmark to hit.


Strategic Erosion of Valuation


Winning bad-fit deals creates a "double whammy" of strategic damage.


These customers generate disproportionate support tickets and consume excessive CSM time, diverting resources from high-potential accounts.


With CAC payback periods often reaching 12 to 18 months, a "False Positive" that churns in month 9 results in the company directly losing money on the relationship.



Click here if you want to find out more about the B2B Sales Discovery Gap.

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