ERP Software vs GovTech Churn Rate
Side-by-side benchmark comparison, updated March 2026.
GovTech has a lower monthly churn rate (0.8%) than ERP Software (1.2%), a difference of 0.4 percentage points. GovTech median ARPU is $500 versus $200 for ERP Software.
Head-to-head benchmarks
| Metric | ERP Software | GovTech |
|---|---|---|
| Monthly churn | 1.2% | 0.8% |
| Annual churn | 13.5% | 9.2% |
| Median ARPU | $200 | $500 |
| Typical customer base | 50-5,000 | 50-500 |
Top erp software churn drivers
- Implementation failure - system never goes fully live after months of effort28%
- Total cost of ownership exceeds projections due to customization and integration costs24%
- Business outgrows the ERP capabilities - graduates to enterprise tier or a different vendor20%
- Module gaps in manufacturing, distribution, or industry-specific workflow requirements16%
Top govtech churn drivers
- Budget appropriation cycle not renewed for the software line item32%
- Procurement rules required retendering after contract term27%
- Elected official change shifted departmental priorities20%
- Product failed FedRAMP, StateRAMP, or CJIS compliance audit13%
Why govtech retains better than erp software
The 0.4-point gap between GovTech and ERP Software reflects differences in switching cost, value density, and purchase motivation. GovTech customers face higher integration and data-migration friction, which extends tenure. ERP Software tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.
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