04 / 05 · Setback & recovery
The time the plan didn't work
NRR index trajectory · Reward Gateway · Early expansion motion failed · What changed
Reward Gateway · 2011–2016
NRR index · Entry = 100 (representing 65% NRR baseline) · Recovery trajectory
↓ Month 8 — First expansion motion launched. NRR deteriorated further. Wrong ICP, wrong trigger, wrong message. Rebuilt from scratch at month 14.
What I learned
The first expansion motion I designed made things worse. Too aggressive, too early, wrong segment. Rebuilding from that taught me more about retention economics than anything else in my career.
The three things I changed
- Killed volume-based expansion — rebuilt around value expansion only after the customer sees ROI
- Changed expansion trigger from contract renewal date to customer success milestone
- Fixed the activation problem, not the churn problem — if activation works, retention follows