What does the term 'Weighted Revenue Risk' refer to?

Weighted Revenue Risk refers specifically to the total value of revenue that is at risk, taking into account the severity of the risk associated with each individual customer. This concept helps in prioritizing which revenue streams are most vulnerable based on various factors such as customer health, engagement levels, or market conditions. By weighting the revenues according to the severity of the associated risks, businesses can focus their customer success efforts on mitigating the most significant threats to their revenue.

This understanding allows organizations to strategically allocate resources and interventions to customers who pose a higher risk, ultimately supporting better decision-making in revenue management and customer retention strategies. In contrast, average revenue, customer counts, or projected growth do not provide insights into the risk associated with that revenue, which is crucial for effective customer success management.