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Dealer churn

Dealer churn starts as a reorder that never came

A resignation is the exception the word suggests. The common pattern is quieter: a dealer orders a little less often, then skips a cycle, and the quarter the revenue moves is late for a phone call.

The word, and the reorder

Dealer churn, partner churn, and dealer attrition are the phrases people search. In a wholesale book they usually name one event: the reorder stopped. The dealer is still in the system. The orders are not.

Partner decay is the longer account of that movement — cadence stretching and baskets shrinking before anyone would call it churn. This page is the search. That one is the mechanism. They are linked so neither has to pretend to be the other.

Last year's logo list

Asked who we lost, a team often answers with a list of logos that bought last year. Several of them have not ordered in months. They have not left in any formal sense. They have stopped, and the monthly total did not have to move for that to be true, because other dealers covered the gap.

The list worth having is the dealers whose cadence broke, each one opened onto the orders and the dates. That is a call list. A logo sorted by last year's revenue is a memory.

The window before the revenue moves

MVE scores health on movement, so a dealer who has been shrinking and a dealer who was always small are not the same problem. The flag carries the specific change: the orders, the dates, the lines that went quiet.

A Channel Context Scan reads your own history and names whether this is the movement costing you, or whether the book is tight. We do not estimate a churn rate on a first call. A rate worth having comes from the file, and only where the file can support it.

What we will not claim

We do not publish a churn rate. The line below counts partners and transactions in one production deployment. It does not say how many dealers were kept.

In production at a US channel distributor: 250+ partners, 100,000+ transactions.

Questions about churn

Is dealer churn the same thing as partner decay?

Partner decay is the movement: ordering less often, across less of the line, before the dealer is gone. Churn is the word most people use once the revenue has already left. The useful window is the first one.

Can you tell us our churn rate from a call?

No. A rate worth quoting comes from your own transaction history, and only where that history can support it. Where it cannot, we say so.

What do you need to see it?

One ERP export and the people who know the book. That is the Channel Context Scan. It takes two weeks, and it can end there.

Read next

Name the dealers who went quiet

Book a Channel Context Scan. We read the export and tell you whether churn is the movement in the book, with every number sourced from your file.