GovTech vs RegTech Churn Rate
Side-by-side benchmark comparison, updated March 2026.
GovTech has a lower monthly churn rate (0.8%) than RegTech (1%), a difference of 0.2 percentage points. GovTech median ARPU is $500 versus $420 for RegTech.
Head-to-head benchmarks
| Metric | GovTech | RegTech |
|---|---|---|
| Monthly churn | 0.8% | 1% |
| Annual churn | 9.2% | 11.4% |
| Median ARPU | $500 | $420 |
| Typical customer base | 50-500 | 50-1,000 |
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 regtech churn drivers
- Regulatory rule change that product had not yet implemented28%
- Financial institution internalized compliance workflow26%
- Acquisition of customer eliminated the compliance function20%
- Product could not scale to new jurisdiction or regulatory body16%
Why govtech retains better than regtech
The 0.2-point gap between GovTech and RegTech reflects differences in switching cost, value density, and purchase motivation. GovTech customers face higher integration and data-migration friction, which extends tenure. RegTech tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.
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