with the skill
# Q3 update: Enterprise is carrying growth while SMB retention is breaking
**Headline:** Revenue grew 6% to $4.35M, but SMB monthly churn jumped from 3.1% to 5.4% after our July support change. If it persists, it will erode the SMB base.
| | Q2 | Q3 | Change |
|---|---|---|---|
| Total revenue | $4.10M | $4.35M | +6.1% |
| Enterprise revenue | $2.60M | $2.95M | +13.5% |
| SMB revenue | $1.50M | $1.40M | -6.7% |
| Enterprise monthly churn | 0.8% | 0.7% | -0.1 pt |
| SMB monthly churn | 3.1% | 5.4% | +2.3 pts |
| SMB median first support response | 4 h | 19 h | ~4.8x slower |
| New SMB signups / month | 410 | 405 | roughly flat |
**What the data shows**
- **Enterprise is healthy.** Revenue is up $350K and churn improved slightly, so the enterprise-first support queue hasn't hurt that segment.
- **SMB is losing customers, not failing to attract them.** Signups are flat (410 → 405 per month), so the $100K revenue drop comes from retention.
- **The timing lines up with the support change.** Support moved to an enterprise-first queue in July, and SMB first response went from 4 h to 19 h. At 5.4% monthly churn, SMB would lose roughly half its accounts over a year, versus about a third at 3.1%.
**Caveat:** This is a strong timing correlation, not proven causation. We haven't yet checked whether the churned SMB accounts were the ones who waited longest for support.
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**Recommendation**
1. **This week:** Pull the Q3 SMB cancellations and compare churn for accounts that filed tickets (and how long they waited) against those that didn't. That tells us whether support is the cause.
2. **In parallel:** Set an SMB response-time target, such as a dedicated or reserved SMB queue, rather than waiting for the analysis to finish. The cost of waiting is another quarter at elevated churn.
**Decision needed:** Approve a support routing or staffing change for SMB, with the cohort analysis reported back in two weeks.
*Source: billing warehouse, finance-reconciled. Churn = accounts cancelled ÷ accounts at start of month.*