GovTech vs Marketing Technology Churn Rate
Side-by-side benchmark comparison, updated March 2026.
GovTech has a lower monthly churn rate (0.8%) than Marketing Technology (3.2%), a difference of 2.4 percentage points. GovTech median ARPU is $500 versus $155 for Marketing Technology.
Head-to-head benchmarks
| Metric | GovTech | Marketing Technology |
|---|---|---|
| Monthly churn | 0.8% | 3.2% |
| Annual churn | 9.2% | 32.5% |
| Median ARPU | $500 | $155 |
| Typical customer base | 50-500 | 500-20,000 |
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%
Top marketing technology churn drivers
- Marketing budget cuts reduced SaaS spend29%
- Consolidation into all-in-one marketing suite24%
- Poor ROI attribution on campaigns run through the tool22%
- Deliverability or data quality issues13%
Why govtech retains better than marketing technology
The 2.4-point gap between GovTech and Marketing Technology reflects differences in switching cost, value density, and purchase motivation. GovTech customers face higher integration and data-migration friction, which extends tenure. Marketing Technology tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.
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